The Reserve Bank of New Zealand will review its 2.5% OCR rate on September 10.
Economists are split on whether the bank will hold the rate or drop it further to 2%.
Australian Reserve Bank governor Glenn Stevens said in a statement that with considerable economic policy stimulus in train around the world, the global economy is resuming growth.
"Growth in China has been very strong, which is having a significant impact on other economies in the region and on commodity markets. The major economies appear to be approaching a turning point."
Most observers still expected only modest growth in the world economy next year due to the continuing legacy of the financial crisis, although forecasts had been revised upwards recently, he said.
Economic conditions in Australia had been stronger than expected with consumer spending, exports and business notable for their resilience.
Measures of confidence had recovered and unemployment had not, to this point, risen as far as expected, Mr Stevens said.
"Weaker demand for labour, evidence in a decline in hours worked, nonetheless has seen a moderation in labour costs."
Helped by this and the earlier fall in energy and commodity prices, inflation had been declining.
Underlying inflation should continue to moderate in the near term but the likelihood of inflation being persistently below the target looked low, he said.
