Ray White New Zealand chief executive Daniel Coulson said the cut was no surprise.
“There was no question that rates were going to see a shift downward today. The only question was by how much,” he said.
“Many had expected the RBNZ to reduce the OCR by 25bps, which possibly gives an insight into how the central bank is feeling about our economic recovery and housing market.
“The further reduction is absolutely welcome news for mortgage holders, would-be borrowers and prospective sellers and while people may be disappointed that the cut wasn’t larger from those perspectives, it does indicate that economic winds may be shifting, albeit slowly.
“The lift in activity that the housing market saw at the end of last year, with the two 50bps reductions in October and November, saw an immediate impact in the housing market with both listings and sales quickly climbing.
“Fast forward to the last cut in February though and that sugar-hit simply never arrived. That cut, as this one was, was largely expected and had been priced in by many.
“That being said, conditions are improving and both the number of sales and listings are continuing to increase at a sustainable rate.
“Today's environment, when it comes to real estate, is providing a balanced field and a great deal of certainty and stability, particularly, when some other asset classes are less predictable.”
Ray White chief economist Nerida Conisbee said the RBNZ was continuing its measured approach to monetary policy easing, despite stronger-than-expected economic performance.
“This marks the fourth consecutive rate reduction since August 2024, gradually unwinding from the peak rate of 5.5 per cent as inflation has moderated to 2.2 per cent, now comfortably within the RBNZ's target band,” Ms Conisbee said.
“The decision reflects the RBNZ's growing confidence in inflation control while recognising continued economic challenges. However, the US ‘Liberation Day’ tariffs have created a more complex outlook, potentially introducing future inflation risks from global trade barriers.
“The central bank appears to be balancing domestic recovery needs against emerging global trade tensions, with another 25bps cut expected in May, though uncertainty grows about additional easing beyond that point.
“The December quarter's GDP growth of 0.7 per cent, while exceeding expectations, hasn't deterred the RBNZ from its easing path as it navigates the delicate balance between supporting economic growth and maintaining its inflation mandate in an increasingly uncertain global environment.”
