New Zealand dollar rises after central bank's interest rate decision

New Zealand dollar rose against most of its major counterparts in the wake of the central bank's decision to keep the benchmark interest rate at 1.50% unchanged, which is the lowest record.

The central bank said in a statement that its monetary policy may need to reduce the interest rate over time to address inflation and achieve the target of employment also, in the face of increased risk in the global markets.

The bank added in a statement that taking into account the sluggish outlook on global economic growth and rising risks, interest rate cuts may be necessary over time to meet New Zealand's economic targets.

The bank cut interest rates by 25 basis points to 1.50% at the May meeting, and analysts expect them to be kept unchanged as central bank officials need to assess things accurately.

In terms of trade, at 16:10 GMT, NZX/USD rose by 0.7% to 0.6688, with a high of 0.6693 and a low of 0.6613.