The official cash rate has been cut to 2.0 percent, a cut of 25 basis points and a new all-time low.
The Reserve Bank wants to cut rates to bring down the value of the New Zealand dollar and to try to lift inflation towards its medium term target of two percent.
Economists had predicted the Reserve Bank (RBNZ) would cut the OCR by 0.25 percent today and signal that at least one more cut of 0.25 percent was likely before the end of the year.
Economists at BNZ went further, predicting that the OCR would be lowered to 1.5 percent by the end of the year, matching the current OCR in Australia.
Financial Advisor Martin Hawes spoke to Paul Henry this morning about what it means for us, before the cut had been announced.