The Reserve Bank has cut the OCR by 50 basis points to 2.5 percent, despite acknowledging inflation is still above where they'd like it.

Finance Minister Nicola Willis says they've factored in broader economic conditions.

She says the central bank clearly thinks any fluctuation in inflation will be constrained by spare capacity in the economy.

Newstalk ZB senior political correspondent Barry Soper says this will come as good news as more people are set to roll into lower mortgage rates.

LISTEN ABOVE

The Reserve Bank has cut the OCR by 50 basis points to 2.5 percent, despite acknowledging inflation is still above where they'd like it.
Finance Minister Nicola Willis says they've factored in broader economic conditions.
She says the central bank clearly thinks any fluctuation in inflation will be constrained by spare capacity in the economy.
Newstalk ZB senior political correspondent Barry Soper says this will come as good news as more people are set to roll into lower mortgage rates.
LISTEN ABOVE

With a straight down the middle approach, Heather du Plessis-Allan Drive on Newstalk ZB delivers the very latest news and views to New Zealanders as they wrap up their day.

Heather du Plessis-Allan Drive

Barry Soper: Newstalk ZB senior political correspondent on what the latest OCR cut means for the economy

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/fe68fa66-8e4d-423d-9d50-b37000518356/transcript

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