The Reserve Bank has cut the official cash rate to its lowest level in three years to support economic recovery.

The central bank dropped the rate by 25 basis points to 2.25 percent, the lowest since June 2022.

The bank's rate setting committee says the economic recovery is patchy and slow but inflation is expected to ease next year, allowing another reduction.

The cut was expected and brings the OCR to a three-year low.

Attention will be on the central bank's commentary and forecasts and how wide it leaves the door open for a further rate cut next year if needed.

Partial indicators over the past two months have pointed to the economy turning the corner after it effectively stalled in the first half of the year.