Australians with a mortgage breathed a little easier on Tuesday when the Reserve Bank cut interest rates by 0.25 per cent.

The cut was the first in more than four years and will slice $82 a month off a $500,000 mortgage. Those with a $300,000 mortgage will have $49 a month extra in their pockets.

KR Peters Director Peter Nicolls welcomed the decision as "good news" and a positive for Victoria's struggling property market.

"The positive is that 30 per cent of the public have mortgages and for them it has been a long time between drinks. They have endured 13 rises, their monthly repayments are through the roof. The  economy has slowed down and some people have been forced to sell their houses. Tuesday's decision is good news for them," he said.

Mr Nicolls said the rate cut was also good news for investors with loans.

The losers are retirees with money in the bank.

"All in all I think it is a positive for the housing market," he said.

While welcoming the cut, Mr Nicolls questioned the timing saying the decision could be seen as political with a federal election due  in the next three months.

"I think this was politically motivated by the Treasurer. I say that because they can go to an election saying 'we bought interest rates down'.

"All along the Reserve Bank Governor has said she wants to see inflation in the 2-3 per cent range. It's currently still 4 per cent and has only been in the desired range in one quarter in all that time. Inflation is not in the zone that would make the Reserve Bank comfortable."

Mr Nicolls said new US president Donald Trump and his obsession with tariffs had unsettled the world economy. He shares the fears of many world leaders and economists that a tariff war would "send inflation through the roof" . Tariffs are paid by those who import goods into a country and are therefore passed on to consumers.

"The timing, in my opinion, was not right especially as the unemployment rate seems to be alarmingly low."

Despite his misgivings on the timing, Mr Nicolls said the rate cut would inject activity into what has been a sluggish property market.

He said buyers had already started to jump back into the market in anticipation of a February cut.

"Two weeks ago it was like someone turned a switch on and enquiries lifted. Where we were getting 4 or 5 groups to an open house, suddenly we were  getting 20. The attitude of buyers has swung. A lot of buyers sat on fence for 6 to 9 months hoping to buy at the bottom of the market. Those buyers are realising now is time to buy. They don't want to miss out and be paying more in six or 12 months."

Mr Nicolls said with interest rates on the way down, buyers will no longer be able to "low ball" and play tough when negotiating on price. Only sensible offers will now secure properties.

And as to when the next interest rate relief will come, Mr Nicolls said it is too early to call.

In her address to the media after the decision to cut was announced, RBA Governor Michele Bullock urged people to be patient.

“Today’s decision does not imply that further rate cuts along the lines suggested by the market are coming," she said.

“If we don’t get inflation down, interest rates won’t come down, and you’ll be stuck with inflation and high interest rates.”

Mr Nicolls said uncertainty over the world economy and who will win the next federal election meant another rate cut in the short term was unlikely.

"We really need to see who wins the election, what Trump does with tariffs and the unemployment figures," he said.

"In other states the property market hasn't been as depressed as in Victoria. They have bounced along with price growth in the double digits, especially Western Australia, South Australia and Brisbane. The difference is those states have not imposed hefty taxes like the ones the Victorian Government has put on property owners.

"Hopefully the rate cut will give the property market in Victoria a bounce but until taxes are eased, especially land tax, the future is uncertain."