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Barry Soper: ZB senior political correspondent on the impact of the latest OCR cut

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The Reserve Bank says several factors are driving down inflation.

It's cut the Official Cash Rate to 5.25 percent, saying it's now confident inflation is returning to the one-to-three percent target range.

The Government is claiming credit for the turn-around - saying tax cuts and government spending cuts have been reducing inflationary pressure.

ZB senior political correspondent Barry Soper says the Government will have been waiting for this announcement. 

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