New Zealand's economy grew slightly less than expected in the second quarter but the solid output figures, bolstered by strong export and domestic demand, may temper rate cut expectations.
Gross domestic product rose a seasonally adjusted 0.9 percent in the second quarter versus the prior quarter and 3.6 percent on the year, Statistics New Zealand said on Thursday.
Economists polled by Reuters expected 1.1 percent growth on the quarter and 3.7 percent on the year.
"Household spending was up 1.9 percent, with Kiwis spending more on going away, eating out, and furnishing their houses," said Statistics New Zealand National Accounts Manager Gary Dunnet.
Strong international demand saw exports increase 4.0 percent, with exports of goods posting the biggest quarterly increase in nearly 20 years, Statistics New Zealand said.