WELLINGTON, Nov 11 (Reuters) - Key risks to New Zealand's economy from falling dairy prices and soaring house prices in Auckland have increased this year thanks to a slowdown in China and global markets turmoil, the country's central bank said on Wednesday.
"Global economic growth has softened over the past six months, and uncertainty over the path of economic and financial adjustment in China has helped to depress commodity prices and added to financial market uncertainty," Reserve Bank of New Zealand (RBNZ) governor Graeme Wheeler said in the bank's six-monthly financial stability report.
"This creates risks for the New Zealand banking system," he said.
The RBNZ said that recent depreciation in the New Zealand dollar was a significant buffer for the economy and for financial systems.
At its last meeting in October, the RBNZ voiced concern about the rising New Zealand dollar. The bank kept rates on holdat 2.75 percent after three consecutive cuts but suggested the bank may cut rates again at its next meeting next month.