But Reserve Bank Governor Alan Bollard said the bank will be watching developments closely as the outlook for the economy and inflation have become more uncertain amid turbulence in global financial markets.

"At this point, we believe that the current level of the OCR is consistent with future inflation outcomes of 1 to 3 percent on average over the medium term," Bollard said in the Monetary Policy Statement.

"However, given greater-than-usual uncertainty at present, we will be watching to see how the upside and downside risks to the outlook are developing."

The central bank has raised interest rates four times since March to knock back rising housing prices, cool persistent domestic pricing pressures and prevent a potential run up in medium-term inflation.

The balance of risks in the economy means the central bank doesn't anticipate having to hike its key interest rate any further, Bollard noted.

"Based on what (data) are saying...we don't see further increases in the rate," Bollard said.

Consumer price inflation in New Zealand is currently running at 2.0 percent on year, inside the central bank's 1-3 percent target band; but domestic inflation, which excludes import prices, remains elevated at 4.1 percent.

Bollard said a recent slowdown in domestic activity suggests the four previous interest rate hikes are starting to tamp down domestic spending with growth in household borrowing beginning to slow and house sales continuing to fall.

He said the economy has yet to be adversely affected by the U.S. subprime mortgage market crisis.

Speaking to reporters after release of the latest monetary policy statement, he said there hasn't been "much impact" from the global credit crisis so far and any fallout remains unclear.

Bollard said domestic consumer confidence was also standing up well in the face of market woes.

"If we were to see a real hit to consumer confidence, that would slow the economy," he said.