The Reserve Bank has left its benchmark interest rate unchanged, as expected, and repeated that rates will stay high for an extended period.
The Official Cash Rate (OCR) was held at 5.5 percent, where it has been since May, with the RBNZ repeating that inflation was slowing under the pressure of its rate rises, but that it still remained too high.
"However, ongoing excess demand and inflationary pressures are of concern, given the elevated level of core inflation," the Monetary Policy Committee said in a statement.
"If inflationary pressures were to be stronger than anticipated, the OCR would likely need to increase further."
The committee said the surge in migration was now posing threats to inflation by stoking demand in the economy.
The reference of a possible further hike was also aimed at financial markets which have been pricing in the chance of rate cuts as early as May next year.
The RBNZ's forecast track for the OCR published alongside the statement pointed to no prospect of cuts before 2025.
"Interest rates will need to remain at a restrictive level for a sustained period of time, so that consumer price inflation returns to target and to support maximum sustainable employment," the committee said.
Other forecasts showed inflation returning to the 1-3 percent target band in the second half of next year, while the economy posted low growth for the first half of next year.
The New Zealand dollar gained close to half a cent against the US dollar after the statement on the threat of a possible rate rise.
Economists had expected the OCR to stay where it was, with inflation falling from last year's peak but at 5.6 percent, still well above the target range of 1-3 percent.
ASB economists labelled the statement as hawkish, with the RBNZ showing more concern about the upside risks to inflation.
"The RBNZ statement hammered home the message that interest rates need to remain high for a sustained period, and with some risk a further OCR increase would be needed if inflation pressures turn out to be persistently stronger than expected," ASB chief economist Nick Tuffley said.
"This message was a shot across the bows of those picking a relatively swift start to the eventual easing cycle."
ASB continued to expect the RBNZ would hold the cash rate at 5.5 percent, with no cuts until early 2025.
"But the balance of risks around that view now looks more even than we had been thinking ahead of the statement," Tuffley said.