Inflation is forecast to ease after peaking in September quarter.
Purchases of Government bonds crystallised big losses on the Crown balance sheet, but were the equivalent of cutting the OCR by 90 basis points.
However, it insists there is no evidence that a 12-week gap over Christmas has caused problems.
But RBNZ says debt-to-income restrictions will remain the same.
Nicola Willis says it brings New Zealand into line with what other countries do.
Government agencies must give a 10% weighting to the economic impact of procurement decisions.
Craig Renney warns yesterday’s cut will take time to come into effect.
Nicola Willis says 50 basis points cut will ease pressure on households and businesses.
It comes after concerns were raised about Reserve Bank plans to raise capital requirements for retail banks.
Economic activity in September quarter expected to be flat, latest quarterly survey of business opinion shows.