OCR cut prudent

The Reserve Bank's decision to reduce the official cash rate from 5.75 per cent to 5.50 per cent is a prudent and welcome step says Business NZ.

Chief Executive Simon Carlaw says the timing and the environment are both right for the move.

"With a negative international economic outlook and widespread uncertainty over energy shortages and diminished business confidence in New Zealand, the Reserve Bank was correct to ease the official cash rate."