A mortgage broker says banks are unlikely to make any changes to home loan rates after the Reserve Bank kept the official cash rate on hold this morning.
The central bank left the rate at 2.25 per cent - a record low for New Zealand - in line with economists' predictions.
Karen Tatterson, an Auckland mortgage broker with Loan Market, said she had expected the official cash rate to stay the same.
"There is too much speculation around house prices at the moment."
She said a cut would have been a bad look for the bank as the move would have the appearance of further stoking house price increases.
"They can't afford to do it from a profile perspective."
Tatterson said she doubted the major retail banks would make any home loan cuts with the rate on hold.
"I don't think there will be any changes at all."
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It was still possible to negotiate rates that were lower than those advertised by the banks and keeping the rates on hold allowed the banks that wiggle room.
Last month the Reserve Bank unexpectedly cut the cash rate taking the market by surprise.
The banks were slow to respond and most only passed on some of the 0.25 percentage point cut to floating and flexible home loan customers.
The move attracted criticism from Labour leader Andrew Little who said he would consider forcing banks to pass on cuts in the official cash rate if they did not respond to a "stiff-arming" if his party was in power.
And if they are not responsive to that you've got to look at your options. I mean you're in government, you have the power to legislate. I wouldn't rule it out and if we did it, it would be with great reluctance and a heavy heart.
Economists are still picking the Reserve Bank to make further cuts this year because of pressure to get back inside its 1 per cent to 3 per cent inflation band.
Inflation is currently running around 0.4 per cent.
Tatterson said even though more cuts were predicted many people were choosing to lock in their mortgage rates now.
"People are saying; 'I'm going to lock it in for two or three years. I'm happy with what it is.'"
Tatterson said people could get a rate of 4.1 per cent fixed for one year at the moment and even if the official cash rate fell further floating rates would likely still be above the fixed rate level.