"A more decisive action now gave inflation the best chance to lift earlier, reducing the probability that unconventional tools would be needed in the response to any future adverse shock," Hawkesby said in remarks delivered to a Bank of International Settlements forum in Manila.

The RBNZ slashed rates by 50 basis points to a record low of 1% this month, surprising markets at the size of the cut as the governor raised the possibility it may have to use negative interest rates in future.