Markets had expected a cut as early as March, but the expectation now is it could be well into the summer before we get the first reduction.
The governing council of the European Central Bank (ECB) meets today but is forecast to pause any rate change for the third meeting in a row.
The pessimism on potential cuts comes as the latest property data shows prices have continued to rise despite mortgage rates being at their highest level in more than a decade.
New home prices were up by 10pc in the July to September period last year when compared with the previous year, according to the Central Statistics Office.
But prices for existing dwellings fell by 1pc over the same period.
New home price inflation continues to be a feature of the market, with the State’s Help-to-Buy and the First Home schemes incentivising the purchase of new properties. A combination of the two schemes means buyers of new homes can get as much as €100,000 towards their purchase from the State.
Estate agents have said this is “turbo-charging” the new homes market.
Property prices for new and existing homes across the State were up by 2.9pc in the year to last November.
In Dublin they rose by 0.9pc, with prices outside Dublin up by 4.4pc, according to the Central Statistics Office (CSO).
A chronic shortage of homes to buy, combined with demographic changes, is keeping demand for housing strong and sending prices up.
In the month of November, prices rose by 0.8pc.
It was the sixth monthly increase since June last year. Up to that point, prices had been falling, economist Dermot O’Leary of Goodbody Stockbrokers said.
The median, or typical, price of a dwelling bought in the 12 months to November was €325,000.
The lowest median price for a dwelling in the same period was €161,000 in Longford.
The highest median price was €622,000 in Dún Laoghaire-Rathdown.
Rises in property prices are continuing at a time when mortgage rates have risen for a year and a half.
The ECB has hiked rates 10 times in a row in the last year and a half, with the refinance rate that affects tracker rates now at 4.5pc.
People on trackers, those on variables and people whose mortgage was sold to vulture fund and can’t fix, have been worst affected.
Mr O’Leary said: “I think it is going to be around the middle of the year before the ECB cuts rates.
“Markets got ahead of themselves at the end of last year expecting cut early this year. The first cut will probably be in June.”
ECB president Christine Lagarde said last week that rates had probably reached their peak but that it was too soon to “shout victory” on inflation, citing economic uncertainties and the possible impact of rising wages on price pressures.
However, markets are still pricing in around a 60pc probability of the first rate cut taking place in April, according to Reuters analysis data.
High expectations for a March cut have been pushed back in recent weeks.
But many economists think a rate cut in April is still a possibility, despite numerous ECB officials arguing that trims may be premature.