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New Zealand central bank says economy expanding, but faces risks

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The Reserve Bank of New Zealand (RBNZ) released its statement of intent for 2016 to 2019 on Wednesday in which it reiterated that the New Zealand economy was expanding, but that uncertainties remained and further easing could be required.

[WELLINGTON] The Reserve Bank of New Zealand (RBNZ) released its statement of intent for 2016 to 2019 on Wednesday in which it reiterated that the New Zealand economy was expanding, but that uncertainties remained and further easing could be required.

"The economy faces a number of headwinds, including low export commodity prices, particularly in the dairy sector, weak world demand and a cautious household sector," the central bank said in the statement of intent.

The RBNZ held rates at record lows of 2.25 per cent when it met in June. The bank's next rate decision will take place on Aug 11.

REUTERS