The RBNZ cut the OVERNIGHT CASH RATE by the expected 50 basis points, although I was very doubtful. Governor Bollard made it clear that the BANK was taking out an insurance policy for the economy until a better assessment can be made about the real impact the earthquake had on New Zealand economic activity. Bollard made it clear that the personal pain for many New Zealanders was very deep and the RBNZ was doing its part to limit further economic dislocation.