The Reserve Bank has kept the benchmark interest rate on hold in its first review of the year.
The bank announced its latest decision on the Official Cash Rate on Thursday morning.
It kept the OCR at the record low rate of 2.5%, which has been in place since March.
Reserve Bank Governor Alan Bollard noted some improvement in the global financial markets but warned there is still a lot of uncertainty in the world economy.
"World prices for New Zealand's export commodities have remained elevated but the recent appreciation of the New Zealand dollar is reducing exporters' returns," the statement from Dr Bollard said.
"The European debt crisis has also increased the cost of international funding, which will likely pressure funding costs for New Zealand banks over the coming year.
"In the domestic economy we continue to see modest growth. Over recent months there have been signs of a limited recovery in household spending and the housing market.
"Further ahead, repairs and reconstruction in Canterbury will also provide a significant boost for an extended period, though there may be further delays resulting from the aftershocks."
Dr Bollard said inflation pressures have remained well contained, with inflation having declined to below 2%.
ANZ chief economist Cameron Bagrie the decision to keep interest rates on hold was was widely expected given the concerns about the global economy.
Mr Bagrie says the Reserve Bank will be in no hurry to raise interest rates, as global turmoil continues to dominate the economic outlook.
Fed signal overshadows OCR
Demand for the New Zealand dollar has eased, after strong gains following the American Federal Reserve's signal that it will keep its overnight interest rate at zero until late 2014.
The statement overshadowed the OCR review.
The signal from the Federal Reserve is an admission that the American economy could be weaker than previously thought.
The decision to keep its benchmark interest rate, which directly influences lending rates throughout the US and the world, at zero till late 2014 led to a wave of US dollar selling.
Most other currencies, including the Kiwi, rose as a result.
The Kiwi was buying 81.6 cents US, up from 80.5 cents before the announcement.