Rate rises upset builders

Builders are upset about interest rate rises, saying they are damaging the construction sector and could cause a widespread housing slump.

Chris Preston, chief executive of the Master Builders Federation, said the frequency of the rate rise was having an impact on his industry.

"Frequent interest rate rises, a tripling of the building levy and a decline in building consents do not paint a rosy outlook for the construction sector," he said.

"If building consent figures continue the trend downward, we could see a slump in the housing market which would have a major impact on the economy."