New Zealand's central bank kept its benchmark interest rate unchanged on Thursday at 2.25 percent but reiterated further easing may be needed given weak inflation.
"Monetary policy will continue to be accommodative. Further policy easing may be required to ensure that future average inflation settles near the middle of the target range," said Governor Graeme Wheeler in a statement.
However, the central bank governor also noted that inflation is expected to strengthen as the effects of low oil prices drop out and as capacity pressures gradually build.
He said the bank will remain closely focused on economic data.