Supplied The Reserve Bank should cut the OCR by 50 basis points, writes Bernard Hickey. 50 basis point cut? Former Reserve Bank economist Michael Reddell, who helped prepare forecasts for such decision, recommended a 50 basis point cut. "Twice before the Reserve Bank has cut the OCR in response to truly-exogenous external events," Reddell wrote in a blog post, pointing to 50 basis point cut after the 9/11 attacks and the Christchurch earthquakes. The 2003 SARS outbreak was also a factor in a rate cut then.

Source: Stuff February 10, 2020 18:04 UTC