It's the news many have been hoping for. 

The Reserve Bank has cut the Official Cash Rate 25 basis points, from 5.5% to 5.25%. 

It says business surveys and economic indicators suggest inflation is returning to within the 1-3% target band. 

But the Herald's Liam Dann told Simon Barnett and James Daniels we certainly won't be getting a return to the record-low cash rate we had during the pandemic. 

He says the central bank isn't declaring victory on inflation and will need to keep the cash rate relatively high for some time. 

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• Watch: 'Darkest before the dawn': Reserve Bank cuts OCR, Luxon fronts media as banks slash rates