Record home construction over the next 12 months should give the economy a much-needed boost, but could also put the brakes on more interest rate cuts.

Approvals for the construction of new homes rose 7.9 per cent in January, beating market expectations, and were up 9.1 per cent in the 12 months to January, the Australian Bureau of Statistics said on Tuesday. CommSec chief economist Craig James said the record amount of housing construction in the…