ASB is welcoming the news that the Reserve Bank has cut the Official Cash Rate by 25 basis points.

This comes after the bank's run of record annual profits ended with a 10 percent fall in its cash profit as borrowing demand slowed down.

Chief Executive Vittoria Shortt says today's OCR cut comes at a perfect time.

"I think it's a really good thing for New Zealand households and New Zealand businesses. We've already been reducing our fixed home loan rates, we started doing that last year...this is a continuation for us."

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