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"He obviously was a supporter of ISIS ideology," she said, referring to the militant group.
Source: Getty Images AsiaPac
The attacker, who was not identified, had been a "person of interest" for about five years, Ms Ardern said, adding that he had been killed within 60 seconds of beginning his attack in the city of Auckland.
Police Commissioner Andrew Coster told the briefing the man was acting alone and police were confident there was no further threat to the public.
"We were doing absolutely everything possible to monitor him and indeed the fact that we were able to intervene so quickly, in roughly 60 seconds, shows just how closely we were watching him," Commissioner Coster said.
Jacinda Ardern condemns known ‘violent extremist'
Ms Ardern said the reasons the attacker was known to authorities were subject to court suppression orders over legal proceedings.
New Zealand has been on alert for attacks since a white supremacist gunman killed 51 people at two mosques in the city of Christchurch on 15 March, 2019.
Ms Ardern, asked if the Friday attack could have been revenge for the 2019 mosque shootings, said it was not clear. The man alone was responsible for the violence, not a faith, she said.
"It was hateful, it was wrong. It was carried out by an individual, not a faith," Ms Ardern said. "He alone carries the responsibility for these acts.
"It would be wrong to direct any frustration to anyone beyond this individual."
A video posted on social media showed shoppers in the supermarket seconds after the attacker struck.
"There's someone here with a knife ... he's got a knife," a woman can be heard saying. "Somebody got stabbed."
A guard asked people to leave the shopping centre shortly before about 10 quick shots rang out.
Source: Getty Images AsiaPac
Ms Ardern's compassionate response to the 2019 mosque shootings united her shocked country, but the Friday violence is likely to lead to questions about why the attacker was allowed to remain free if authorities decided he had to be watched so closely.
Ms Ardern said the man had not committed offences that would have led to his arrest.
"If he had committed a criminal act that would have allowed him to be in prison, that's where he would have been. Unfortunately, he didn't ... instead he was being monitored constantly, constantly, and followed," she said.
She said she was "absolutely gutted" when she got news of the attack.
Of the six wounded people, three were in critical condition, one in serious condition and two were in moderate condition, the St John ambulance service said.