Ruth Gregory voted for interest rates to be cut by 25 basis points.
But the former Treasury economist said there were “reasons for caution”.
“A near-term rise in inflation could cause households to push for bigger pay rises. So the upside risks to inflation are still very real.
“But with the weakening in the jobs market gathering pace, it is probably only a matter of time before inflation returns to the two per cent target.
“On balance, quarterly interest rate cuts that return rates from 4.25 per cent now to a more neutral setting of around 3 per cent remain appropriate.”