The Reserve Bank of New Zealand on Thursday cut its Official Cash Rate from 5.0 percent to 3.5 percent, the lowest level in a decade.

"Today's decision brings the cumulative reduction in the OCR since July 2008 to 4.75 percentage points. Lower interest rates will have a positive impact on growth, alongside a lower exchange rate and fiscal stimulus, provided firms and households do not unnecessarily contract their spending," said Reserve Bank Governor Alan Bollard.

(Xinhua News Agency January 29, 2009)