So the Reserve Bank, having decided it would need to cut the official cash rate by half a percentage point, has opted to front-foot the process and do it in one go.

Whatever merits this approach may have, they have to be weighed against some significant downsides.

The immediate effect was to send the kiwi dollar lower, to levels last seen four years ago.


But this is really just joining, perhaps inevitably, a race to the bottom in exchange rates that New Zealand cannot win.

It comes hard on the heels of the US Federal Reserve cutting its policy