Reserve Bank drops OCR to 4.75%

A pain killer for mortgage holders or are there more economic aches to come? The reserve bank's sliced half a percentage point off the official cash rate; dropping it to 4.75 percent. It said the cut was justified by slowing inflation and the subdued economy. Economists had strongly favoured a supersized slice, with some calling for an even bigger drop, Kiwi Bank chief economist Jarrod Kerr spoke to Lisa Owen.