Wellington - New Zealand's Reserve Bank held the official cash rate at 2.5 per cent, according to a statement issued Thursday morning.

The Reserve Bank repeated its concerns about a premature pick-up in the country's housing market and the high New Zealand dollar.

"The level of the dollar, in particular, is not helping the sustainability of future growth and brings with it additional economic risks," Reserve Bank Governor Alan Bollard said.

On Tuesday, the New Zealand dollar hit 66.35 US cents, a 10-month high.

New Zealand's influential agriculture and export sectors had called on the Reserve Bank to take action.

Bollard said he could still cut the official cash rate "modestly" over coming months.

The next announcement on the official cash rate is September 10.(dpa)