New Zealand's central bank has super-sized a fresh rate cut to help the Kiwi economy out of the ditch, eying even further easing to come.

The Reserve Bank of New Zealand surprised analysts on Wednesday by opting for a 50 basis point reduction in the official cash rate, taking it to 2.5 per cent.

New Zealand mortgage-holders have now benefited from 300 basis points of easing in the last 14 months, compared to Australia, where the OCR has shifted just 75 in the latest cycle.

That's owing to the economically dire weather across the Tasman, where gross domestic product contracting by 0.9 per cent last quarter, and 1.1 per cent over the last year.

"It's taking a lot of work to get this economy turning around and today's decision will hopefully be the shock treatment required to get everyone

See Full Page