New Zealand's central bank has cut interest rates to a record low 1.75 percent in an effort to boost inflation and lower the value of the currency.

The Reserve Bank cut its benchmark rate by 0.25 percent Thursday, its seventh quarter-point cut since June 2015. The move was expected by most economists. The bank is projecting it will keep rates low for several more years.

Bank Governor Graeme Wheeler said weak global economic conditions coupled with low interest rates are putting upward pressure on the kiwi dollar. He said the domestic economy is growing thanks to strength in construction and tourism.

New Zealand's annual inflation rate is 0.4 percent, below the bank's target of about 2 percent. The New Zealand dollar is worth about US$0.73, more than exporters would like.