Wellington - Reserve Bank of New Zealand Governor Alan Bollard announced the implementation of new liquidity measures Thursday and resisted mounting calls to cut the official cash rate ahead of a scheduled October 23 review.

The nation's financial system "has held up relatively well" in the face of international volatility, Bollard said in a statement.

The bank was scheduled to review the interest rate on October 23.

Bollard also said the bank would temporarily broaden its security programme.

"We will, if required, be prepared to lend on the basis of fully-secured residential mortgage-backed securities, prior to those securities achieving formal ratings," he said.

Opposition National Party leader John Key has urged the bank to cut interest rates before the monetary policy review.

"While the Reserve Bank governor is independent, my view is that interest rates do need to come down in New Zealand," Key told reporters on a campaign trail Thursday.

"You've got a situation where Australia cut by 100 basis points, that's putting a lot of pressure on our exchange rate as we rise higher against the Australian dollar," he said.

Parliament has called a general election, which is scheduled on November 8. (dpa)