The Reserve Bank says the economy should recover next year, although it won't feel that way to many

It's cut the Official Cash Rate 50 basis points - to 4.25 percent.

Governor Adrian Orr says it should help economic growth should pick up, by encouraging investment and spending.

But productivity has been falling, global conditions are uncertain, and many people are out of work.

Orr says employment growth is expected to remain weak until at least mid-2025 and for some, financial stress will take time to ease.