The Reserve Bank has cut the official cash rate by 50 basis points to 2.5%.
The Reserve Bank had been facing a difficult decision on how much to cut its benchmark interest rate on Wednesday.
Several economists and other commentators had been expecting a drop of 50 basis points to 2.5%, while others had been picking a 25-point cut.
A business survey yesterday highlighted a gloomy business outlook in a weakening economy, adding weight to the case for a bigger cut.
Finance Minister Nicola Willis has said there’s no doubt the economy is facing a challenging recovery, but said stimulation by the government wouldn’t help it.
