Rates up again as Tasmanian lenders, builders ponder

The Reserve Bank on Tuesday lifted the cash rate by a smaller than widely expected 0.25 percentage points.

It was the latest in a series of increases that started in May, taking the rate from an emergency-level low of 0.10 per cent to 2.60 per cent, with the possibility of more to come.

Tasmanian-based MyState Bank said: "Following the RBA's decision to increase the cash rate by 0.25 percentage points at its October meeting, MyState is reviewing its lending and deposit interest rates."

"MyState will announce changes to interest rates as soon as a decision is made."

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The other main Tasmanian-based lender, Bank of us, said it would review its products and pricing early next week, "taking into consideration the interests of both borrowers and depositors".

Chief executive Paul Ranson said he was hopeful "that we are getting to the end of the significant rate increases".

Master Builders Tasmania stressed the importance of the building industry in supporting the Tasmanian economy, spruiking a push to attract many more workers to the sector.

"The economic conditions in the UK, Europe, the US and in China are all looking concerning and the best way to keep Tasmania's economy strong in spite of the strong headwinds is to keep building," Master Builders Tasmania chief executive Matthew Pollock said on Tuesday.

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"Master Builders' own forecasts that we're releasing today show that there is a massive pipeline of public and private non-residential building projects set to commence over the next five years.

"There is already $9 billion worth of commercial projects to build between now and 2026 and over $20 billion in commercial projects we're expecting to build over the next 10 years."

Mr Pollock said the projects would be an important buffer, with the global economy expected to hit stormy waters over the next few years.

"There is no doubt that building and construction will be the most important industry and economic driver in Tasmania over the next decade," he said.

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"That's why the government's High Vis Army strategy is so important because we will need to grow our workforce by 25 per cent by 2025 if we are going to keep up with demand."

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