The Prime Minister says this afternoon's double cut to the OCR is another sign the economy's improving.

The Reserve Bank is also signalling it'll follow up with at least two more 25 point reductions by the end of May.

Despite low productivity and net migration, our economy is expected to gradually pick up, in part due to rising dairy and beef prices - and the low Kiwi dollar.

ZB senior political correspondent Barry Soper says the Government's feeling proud of today's OCR update. 

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