It's the start of a significant turnaround for the economy - as the Reserve Bank slashes the OCR for the first time since 2020.

It's dropped the cash rate 25-basis points to 5.25 percent.

Former Reserve Bank economist, Michael Reddell says Governor Orr's post-announcement claims about the economy don't stack up.

"It's not as if some big event has happened externally, it's just that they badly misread what was going on in the economy - and it's pretty inexcusable."

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