New Zealand cuts rates to a record low

In a surprise move, the Reserve Bank of New Zealand (RBNZ) has cut its lending rates for the fifth time since June last year to a record low of 2.25 percent.

The bank said the 25 basis point cut was due to global growth worries and weaker demand from China - an important trade partner.

New Zealand is the world's largest dairy exporter but the sector has been facing some challenges. The central bank signalled it could cut rates further to help boost growth.

The New Zealand dollar fell on the news by more than 1 percent.

The RBNZ last cut rates in December from 2.75 percent to 2.5 percent, saying the country's economy had softened in 2015.

At the time, central bank governor Graeme Wheeler said he was positive about the outlook for inflation and economic growth for 2016. However, as he announced the bank's latest cut, Wheeler said the outlook for global growth had worsened since the December cut.