The Reserve Bank today reduced the Official Cash Rate (OCR) by 25 basis points to 2.25 percent. The outlook for global growth has deteriorated since the December Monetary Policy Statement, due to weaker growth in China and other emerging markets, and slower growth in Europe. This is despite extraordinary monetary accommodation, and further declines in interest rates in several countries. Financial market volatility has increased, reflected in higher credit spreads. Commodity prices remain low. Domestically, the dairy sector faces difficult challenges, but domestic growth is expected to be supported by strong inward ... (full story)