WELLINGTON, Feb 8 (Reuters) - The Reserve Bank of New Zealand kept interest rates on hold on Thursday, as expected, and said economic growth was expected to strengthen due to accommodative policy, a high terms of trade, government spending and population growth.
The central bank kept interest rates unchanged at a record low of 1.75 percent, and said that longer-term inflation expectations were well anchored at 2 percent.
The New Zealand dollar dropped to a one-month low of $0.7209, from $0.7262 immediately after the release. It last stood at $0.7214. (Reporting by Charlotte Greenfield and John Mair)