Building Approvals Drop Unexpectedly 7.8%

The Australian Bureau of Statistics has released figures showing that building approvals in February 2012 actually fell 7.8% which was against market expectations as many commentators were expecting a modest improvement in approvals. It sets up the scenario, along with the inflation rate at the lower end of expectations, where the RBA may consider dropping interest rates tomorrow at their monthly meeting. Homeowners will be keeping an eye on the chairman's announcement tomorrow and then the banks to see who follows.