WELLINGTON, Sept. 22 (Xinhua) -- New Zealand's central bank on Thursday held its official cash rate (OCR) at 2 percent, but issued a warning on the country's over-valued dollar, which was causing negative inflation.
In its regular OCR review the Reserve Bank of New Zealand (RBNZ) noted a range of pressures slowing global growth, including ongoing "political uncertainty," unprecedented levels of monetary stimulus and significant surplus capacity in many economies.
These were suppressing global inflation and economies with low interest rates relative to New Zealand were pushing up the New Zealand dollar exchange rate, RBNZ governor Graeme Wheeler said in a statement.
"The high exchange rate continues to place pressure on the export and import-competing sectors and, together with low global inflation, is causing negative inflation in the tradables sector," said Wheeler.
"A decline in the exchange rate is needed."
Domestic growth - with gross domestic product up 0.9 percent in the second quarter - was expected to remain supported by strong net immigration, construction activity, tourism, and accommodative monetary policy.
"High net immigration is supporting strong growth in labour supply and limiting wage pressure," said Wheeler.
"House price inflation remains excessive, posing concerns for financial stability. There are indications that recent macro-prudential measures and tighter credit conditions in recent weeks are having a moderating influence."
Headline inflation at 0.4 percent was being held below the RBNZ's target band of 1 percent to 3 percent by continuing negative tradables inflation.
Annual consumer price index inflation was expected to weaken in the September quarter, reflecting lower fuel prices and other factors, and then rise from the December quarter, reflecting stimulus measures, the strength of the domestic economy, reduced drag from tradables inflation, and rising non-tradables inflation.
"Although long-term inflation expectations are well-anchored at 2 percent, the sustained weakness in headline inflation risks further declines in inflation expectations," said Wheeler.
He left the door open for future imminent cuts in the OCR, saying they might be needed to ensure that inflation settled near the middle of the target range.
Nokia (Swiss: NOK1V.SW - news) has struck a 15.6 billion euro deal to buy its rival Alcatel (Paris: FR0000130007 - news) -Lucent to create the world's biggest supplier of mobile phone network equipment Oklahoma City Thunder Jersey , both companies said on Wednesday.
The Finnish telecom giant has agreed to give shareholders in its Franco-American rival 0.55 shares in the new merged company for every one of their own.
The new group "will be uniquely positioned to create the foundation of seamless connectivity for people and things wherever they are," Nokia's statement said.
It will go by the name Nokia, be based in Finland Kristaps Porzingis Jersey , and be run by Nokia's current management team, it said.
The group is targeting savings of 900 million euros ($960 million) in costs by the end of 2019 without further job cuts following the restructuring, both companies said Tim Hardaway Jr. Jersey , adding that the merger should save an additional 200 million euros in financial charges.
Alcatel-Lucent boss Michel Combes, told French TV channel BFM Business that the new group was committed to "increasing R&D activities in France by 25 percent" by hiring 500 additional researchers, bringing the total research and development workforce in the country to 2 Enes Kanter Jersey ,500.
"The new group's innovation and research capabilities on a global scale will be spearheaded in France," he said.
The French government said Tuesday it was concerned about jobs disappearing in France if the merger were to go through.
Rumours have swirled since December of a possible deal between the two firms, with France's Les Echos reporting on Monday that executives had been in negotiations since January.
Nokia was the world's biggest mobile phone maker for more than a decade until it was overtaken by South Korea's Samsung in 2012.
Then in 2014 Patrick Ewing Jersey , Nokia sold its mobile phone and tablet division to US software giant Microsoft (NasdaqGS: MSFT - news) , and the company now develops mobile and Internet network infrastructures for operators.
Nokia is now set for a significant boost in market share.
The deal will also help Nokia bolster its mobile infrastructure business against Swedish arch-rival Ericsson (Xetra: ERCA.DE - news) and China's Huawei, profiting from Alcatel's position as a leading supplier of 4G and LTE mobile networks and related services.
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