Don't expect house prices to rise, when interest rates fall

The Reserve Bank's already cut the Official Cash rate by 25 basis points, to 5.25 percent.

Most banks have already dropped their advertised home loan rates in response.

But Reserve Bank Governor Adrian Orr says he's doesn't expect house prices to pick up any time soon.

He says the Reserve Bank isn't concerned about house prices, but expects them to remain pretty flat for the forseeable future.