OCR cut by 50 basis points to 2.50%
Reserve Bank Governor Alan Bollard says the Reserve Bank extends its sympathies to all those affected by the Christchurch earthquake.
"Our condolences go especially to those who have lost family, friends and colleagues.
"The earthquake has caused substantial damage to property and buildings, and immense disruption to business activity. While it is difficult to know exactly how large or long-lasting these effects will be, it is clear that economic activity, most certainly in Christchurch but also nationwide, will be negatively impacted. Business and consumer confidence has almost certainly deteriorated.
"Even before the earthquake, GDP growth was much weaker than expected through the second half of 2010. Households have continued to be very cautious, with retail spending volumes and residential investment both declining.
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