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New Zealand Prime Minister Christopher Luxon has criticized the Reserve Bank for not cutting the Official Cash Rate (OCR) aggressively enough to stimulate the economy. Last week, the central bank reduced the OCR by 25bps to 3%, with the monetary policy committee narrowly voting 4-2 against a deeper 50bps cut. This follows a gradual decline from 5.5% since August last year. Speaking in an interview with local media, Luxon indicated that the board should have acted more decisively amid economic stagnation. Unemployment rose to 5.2% in June, with 158,000 people out of work, and Luxon described a “two-speed” recovery, where urban areas lag behind regional growth. Luxon noted that two more OCR reviews remain before Christmas, implying further action could still be taken.