New Zealand's central bank kept interest rates steady as expected on Thursday but said some further easing may be needed due to low inflation.
The Reserve Bank of New Zealand left the official cash rate unchanged at 2.5 percent after cutting four times last year.
"Some further policy easing may be required over the coming year to ensure that future average inflation settles near the middle of the target range," it said in a statement. "We will continue to watch closely the emerging flow of economic data."
All economists polled by Reuters had expected the Reserve Bank of New Zealand (RBNZ) to remain on hold.