Global central banks keep rates low

The S&P/NZX 50 Index rose 130.67 points, or 1%, to 13074.61. Turnover was $220 million.

Mark Smith, a senior economist at ASB Bank, said markets “breathed a collective sigh of relief” when the US Federal Reserve signalled it was in no hurry to hike interest rates.

“This provided a boost to global equities, with the MSCI global equity gauge hitting a record high after the decision and with gains in US and European stocks overnight,” he said.

Encouragement also came from the Bank of England, which made a shock decision to not raise interest rates as investors had expected, BNZ rate strategist Nick Smyth said.