The Reserve Bank is set to issue their latest OCR update tomorrow - and experts are divided about the outcome.

Some economists are predicting rate cuts will come now, while others believe the Reserve Bank will hold steady and announce cuts later in the year.

Infometrics Principal Economist Brad Olsen says the Reserve Bank needs to lay the groundwork for future rate cuts.

"The economy is in a darker place - but the Reserve Bank backed itself into a corner, all bets are off at the moment."

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