News: New Zealand's central bank reiterates more easing to come

WELLINGTON, Oct 11 (Reuters) - New Zealand's central bank reiterated on Tuesday that further policy easing will be needed to ensure that the inflation rate increases and settles near the middle of its target range.

The central bank is mandated with keeping annual inflation at between 1 and 3 percent. The annual rate was 0.4 percent in the second quarter.

In a speech, Assistant Governor John McDermott said that September quarter inflation, to be announced Oct. 18, is expected to be low.

The central bank kept the official cash rate (OCR) on hold at 2.0 percent in September but left the door open for more rate cuts.

"As described in the September OCR review, monetary policy will continue to be accommodative," said McDermott.

"Our current projections and assumptions indicate that further policy easing will be required to ensure that future inflation settles near the middle of the target range," he said.