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Manufacturers and exporters say the cut to the official cash rate brings much needed relief to the sector, which has battled the strong kiwi and high interest rates for the past two years.
Manufacturers and Exporters Association chief executive John Walley said the move was very much welcomed, but another rate cut of 100 basis points in January was likely to be needed.
"The focus needs to be on supporting the real economy as we work towards an economic revival. Given our trading partners are likely to decline further next year, it is important to get our interest rates into an expansionary setting so that exporters can take advantage of overseas markets while they are still there."
Similar cuts in countries such as Australia, Britain and the US meant that New Zealand still had one of the highest cash rates in the developed world. As the financial crisis widened, Walley said other countries had demonstrated they were more concerned about their economies than inflation.
"It is a shame that the Reserve Bank Act has not allowed [Reserve Bank Governor] Dr Bollard to act sooner to stimulate the economy.
"We have already suffered two quarters in recession and only now are we moving towards a position where an export-led recovery can occur."
The credit crunch, however, had not affected the sector's access to credit, said Walley.
"The costs have gone up a bit in terms of the points over base [and] in terms of fees - that's different as banks chase a bit more margin - but liquidity or availability is there."
