The Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler said in a speech on Wednesday that the interest rate cut is not "a mechanistic approach". But he noted that further policy easing could be needed if concerns about the global economy will deepen.

"If concerns deepen around the prospects for the global economy and its impact on New Zealand, some further policy easing may be needed over the coming year to ensure future average inflation settles near the middle of the target range," Wheeler said.