The New Zealand Reserve Bank has an official cash rate of 3.5% and economists are divided about whether a cut will come this year or next.
Craigs Investment Partners broker Peter McIntyre said he would not be surprised if another cut came, because the Australian central bank specifically mentioned measures being taken in other countries to stimulate their respective economies.
Reserve Bank of Australia governor Glenn Stevens said in a statement the Federal Reserve was expected to start increasing its policy rate later this year but some other major banks were stepping up the pace of unconventional policy measure.
''Hence, financial conditions remain very accommodative globally, with long-term borrowing rates for sovereigns and creditworthy private borrowers very low.''
The United Kingdom had a lending rate of 0.5% and the United States had a rate of near zero, giving Mr Stevens plenty of room for manoeuvre, Mr McIntyre said.
In response to the RBA cut, the New Zealand dollar fell against the Australian currency, which went up against the US dollar.
''That's not the sort of reaction I would have expected from the currency but I suspect some people are starting to notice our economy slowing.''
With the GlobalDairyTrade auction today, Mr McIntyre suspected people were ''taking money off the table'' in response to another fall in commodity prices.
Mr Stevens said the available information in Australia suggested improved trends in household demand over the past six months and stronger growth in employment.
Looking ahead, the key drag on private demand was likely to be weakness in business capital expenditure in both the mining and non-mining sectors over the coming year. Public spending was also scheduled to be subdued.
''The economy is therefore likely to be operating with a degree of spare capacity for some time yet. Inflation is forecast to remain consistent with the target over the next one to two years, even with a lower exchange rate.''
Low interest rates were acting to support borrowing and spending, and credit was recording moderate growth overall. Lending to businesses had been stronger of late, he said.
Growth in lending to the housing market had been steady over recent months.
Dwelling prices continued to rise strongly in Sydney although trends had been more variable in other cities.
