Hopes the latest OCR cut will help the economy recover faster

The Reserve Bank's slashed the cash rate by 50-basis-points to 2.5 percent.

It says the economy isn't producing as much, or employing as many people as it could be, and it hopes lower interest rates will spur more investment and spending.

Finance Minister Nicola Willis it's a proven recipe.

She says in every economy where interest rates are lower, people do better, with more investment, more job creation and higher incomes.