Reserve Bank Governor Graeme Wheeler says further interest rate cuts are still likely, but he will consider how much cheaper borrowing costs will boost investment.

With inflation running at close to zero, Wheeler has indicated he will reduce the Official Cash Rate (OCR) before the end of the year.

However, economists have questioned how much of an impact lower interest rates will boost the economy.

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In a speech to the INFINZ conference in Auckland on Wednesday, Wheeler suggested that the impact a cut in interest rates would have on investment would be considered, as well as the need to keep something in reserve if the global economy cooled.

"Recent economic indicators have been more encouraging. Some further easing in the OCR seems likely, but this will continue to depend on the emerging flow of economic data," Wheeler said.

"At the same time, however, we remain conscious of the impact that low interest rates can have on housing demand and its potential to feed into higher price inflation. It is important also to consider whether borrowing costs are constraining investment, and the need to have sufficient capacity to cut interest rates if the global economy slows significantly."

Economists took the comments as being a sign that Wheeler would place a high hurdle on the need to cut the OCR below 2.5 per cent.

On October 8, BNZ warned that cutting interest rates may not boost investment or even increase inflation, and might reduce the central bank's scope to stimulate the economy in the future.

But just hours after Wheeler's speech, Finance Minister Bill English said the governor was still bound by an agreement to get inflation up.

"We just work on the assumption that the Reserve Bank will meet its target, that inflation will eventually get to 2 per cent," English said as he unveiled the first surplus the government has recorded since National took office in 2008.

"That's what he's meant to be doing. He's got a policy targets agreement. That hasn't been changed."

BNZ head of research Stephen Toplis said businesses were indicating that lower interest rates would not boost their investment plans, and may do little to stimulate spending apart from adding new buyers to the inflated Auckland housing market.

"If the costs of achieving inflation at 2 per cent... are greater than the benefits of achieving it, then common sense says you don't go down that track," Toplis said.

While BNZ supported the Reserve Bank having an inflation target in the current environment it needed to be more flexible.

The Reserve Bank next reviews the OCR on October 29. Economists are split between whether Wheeler will cut from 2.75 per cent to 2.5 per cent at the next review or in the final review of the year in December.

Westpac is predicting that eventually the OCR will fall to 2 per cent, an all time low, as the Reserve Bank struggles to get inflation back to its target rate of 2 per cent. However yesterday Wespac said that Wheeler's speech showed he was reluctant to cut the OCR below 2.5 per cent, so it was pushing back when further interest rates cuts might be made.

On Friday official figures are expected to show the consumer price index - the most commonly used form of inflation - fell back to 0.3 per cent for the year to September 30.