New Zealand shares were muted with a negative bias on Thursday, following a rally fueled by the widely expected rate cut from the central bank.

The S&P/NZX 50 Index was little changed at 12,754.58. The index has gained more than 1% over the past five trading days, buoyed by the Reserve Bank of Australia's supersized 50-basis-point rate cut on Wednesday.

Analysts at ANZ expects the central bank to deliver another 50-bps cut when it meets in November, though its next move remains conditional on upcoming data, according to a Wednesday note.

In macroeconomic data, household spending rose 1% to NZ$60 billion in the June quarter, while net disposable income fell 0.9% to NZ$59 billion, Stats NZ reported.

In corporate news, Auckland International Airport (NZE:AIA, ASX:AIA) closed its NZ$200 million oversubscribed retail offer, according to a Thursday filing. AIA's shares were flat.

Synlait Milk (NZE:SML, ASX:SM1) increased its forecast base milk price for the 2024 to 2025 season to NZ$9 per kilogram of milksolids (kgMS) from NZ$8.60 per kgMS, citing higher commodity prices and contractions in global supply.

Elsewhere, the country's flag carrier, Air New Zealand (NZE:AIR, ASX:AIZ), said group capacity declined 7% year over year in August as a result of aircraft availability. The airline's shares closed nearly 2% lower on Thursday.