Today's 0.5 percent cut in interest rates, on top of a similar cut in September, adds up to one of the largest-ever reductions in interest rates by the Reserve Bank and indicates that Don Brash regards the world economic slowdown as serious, ACT leader Richard Prebble says.

"Countries around the world realise that interest rate cuts by themselves are not enough to ward off a dramatic global slowdown," Mr Prebble said.

"New Zealand needs a tax cut - at the very least a reduction in the top rate immediately from a punitive 39 cents in the dollar to 33 cents.

"Such a tax cut would see static losses of revenue of $300 - $400 million a year but it would send a very powerful signal to investors and successful Kiwis to come home," Mr Prebble said.

ENDS

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