Kiwis are being told to use the drop in the Official Cash Rate as a chance to review their finances and savings, and consider debt reduction.

The Reserve Bank of New Zealand has cut the OCR by 25 basis points to an all-time low of 2 per cent, pointing to slow global growth, low interest rates and the high dollar as the reasons behind its decision announced on Thursday.

The Reserve Bank has cut the Official Cash Rate to an all-time low of 2 per cent on Thursday. File Photo.

With the fall in the OCR, and possible flow on to mortgage and deposit rates, it's an opportune time to make sure you're making choices that are right for you, says Commerce and Consumer Affairs Minister Paul Goldsmith.

'This includes whether or not to consolidate debt, or move around investments. There are plenty of online resources and financial advice available to help people make sensible financial decisions,' says Paul.

'The Sorted website, relaunched earlier this year, provides a range of online tools such as budgeting and mortgage calculators that can help with a variety of everyday finance needs.”

The Financial Markets Authority website also provides information about the risks and benefits of different types of investment products.

Paul says it's important to remember all investments carry risk, but some are exposed to higher risk than others .

This is why people should ask questions or seek sound advice before investing, especially if that investment is promising a high return, he says.

'The government has a goal to improve the financial capability of all New Zealanders to better shape their lives, avoid hardship and achieve their goals.

'We want to make sure New Zealanders are building their financial capability and getting ahead financially,” says Paul.

The next OCR decision will take place on September 22.

To read the full statement about Thursday's OCR cut visit The Reserve Bank of New Zealand website.

Commerce and Consumer Affairs Minister Paul Goldsmith. File Photo.