The Reserve Bank has left the official cash rate (OCR) unchanged at 1.75 percent.
Reserve Bank Governor Graeme Wheeler announced on Thursday morning the rate will remain stable.
"Global economic growth has become more broad-based in recent quarters. However, inflation and wage outcomes remain subdued across the advanced economies, and challenges remain with ongoing surplus capacity," the bank said in a statement.
"House price inflation continues to moderate due to loan-to-value ratio restrictions, affordability constraints, and a tightening in credit conditions. This moderation is expected to persist, although there remains a risk of resurgence in prices given continued strong population growth and resource constraints in the construction sector."
Mr Wheeler says a lower New Zealand dollar is needed to increase tradables inflation, as annual CPI inflation eased in the June quarter and GDP in the March quarter was lower than expected.
"Monetary policy will remain accommodative for a considerable period," Mr Wheeler said.
"Numerous uncertainties remain and policy may need to adjust accordingly."