Expect another cut to the Official Cash Rate before Christmas

The Reserve Bank has cut the OCR by 50 basis points, following a 25-basis point cut in August.

Banks are following through with further interest rate cuts.

ASB Chief Executive Vittoria Shortt says the neutral rate is about 3.25 percent, so the central bank still has a way to go. . She says it could drop another 50 basis points next month, provided inflation is back under control.