Kiwibank is suggesting more OCR cuts are needed to revive the economy

It's latest Economic Outlook shows there are signs recovery has begun but it's softer than previously forecast.

The report notes another 25 basis-point-cut would keep momentum.

Senior Economist, Mary Jo Vergara says they're forecasting the OCR at 2.5 percent the end of the year.

She says that would see mortgage and retail rates fall closer to 4.5 percent.