According to Compare the Market’s economic director David Koch, the board made “the right decision” by holding the cash rate. He said that strong employment supported a pause while inflation remains elevated due largely to external pressures and government spending. According to Finni Mortgages principal Eva Loisance, holding the cash rate won’t reverse the weakened property market but may slow further deterioration. Loisance said with the cash rate at 4.35 per cent, financial conditions continue to be restrictive and borrowing capacity remains compressed, while buyer sentiment stays cautious. She said that the current price declines in major capital markets have created opportunities but only for investors with strong cash flow buffers.