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. 

LISTEN ABOVE

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. 
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.

Advertisement