New Zealand Reserve Bank will keep the Official Cash Rate (OCR) at 1.75 percent through 2019 and into 2020, and the direction of the next OCR move could be up or down.

Reserve Bank Governor Adrian Orr said in a statement on Thursday that employment is around its sustainable level and consumer price inflation remains below the 2 percent mid-point of the target, necessitating continued supportive monetary policy.

"Our outlook for the OCR assumes the pace of growth will pick up over the coming year, assisting inflation to return to the target mid-point," Orr said.

The projection for the New Zealand economy, as detailed in the August Monetary Policy Statement, is little changed, he said, adding while GDP growth in the June quarter was stronger than anticipated, downside risks to the growth outlook remain.

Domestically, ongoing spending and investment, by both households and government, is expected to support growth, he added.

There are welcome early signs of core inflation rising towards the mid-point of the target, and consumer price inflation is expected to gradually rise to the 2 percent annual target as capacity pressures bite, Orr said.

"We will keep the OCR at an expansionary level for a considerable period to contribute to maximizing sustainable employment, and maintaining low and stable inflation," he said.