COMMENT:

From where Australians sit, the New Zealand economy doesn't look too bad. The terms of trade — how much money the country gets for its exports — are bouncing along at a record high, unemployment is at a decade low and inflation is nicely contained, but not worryingly low.

And yet Adrian Orr surprised everyone with a full half percentage point rate cut and warned of the strong possibility of negative interest rates.

The shock decision prompted one question for Australians; If that's what the Kiwis are doing, what does it mean for us and our economy, which isn't

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