An economics expert says cutting the Official Cash Rate is unwarranted.

The Reserve Bank is set to release its first 2025 OCR decision on Wednesday.

Many economists are predicting a 50 basis point cut - from 4.25 percent to 3.75.

Auckland University economics professor Robert MacCulloch says the bank's only meant to focus on inflation, which is already on target.

"They're not looking at the inflation rate - it's exactly at 2 percent. But they're panicking about the state of the economy, that's the truth. I think that's what's going on."

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