The Reserve Bank is expected to highlight the rise of the dollar as a significant threat to the economy's recovery when it announces its stand on monetary policy on Thursday.
Economists say the bank, despite the pessimistic tone of its talk, is likely to leave the cost of borrowing unchanged at 2.5%.
Last month, it left the rate on hold for the first time in almost a year. A series of consecutive cuts began on 24 July 2008 when the Official Cash Rate was lowered from 8.25% to 8%.
Bank governor Allan Bollard said on 11 June that signs of a pick-up in the housing market and rising migration indicated a potential rebound.
However, Dr Bollard warned that the stronger dollar threatened any sustainable recovery and he would not rule out further rate cuts.
Since then the dollar has strengthened, but TD Securities senior strategist Annette Beacher says a rate cut is unlikely.
Ms Beacher says the market acted prematurely by pricing in three rate rises for the early part of next year.
Other views
AMP investment strategy head Jason Wong says New Zealand is unlikely to start raising rates on its own. He says it is likely to be in line with other central banks.
Institute of Economic Research senior economist Shamubeel Eaqub says the Reserve Bank will still be well aware of the risks.
He says this recession is one of the biggest in recent memory and some significant adjustments have taken place in the New Zealand and global economies.
But he says the Reserve Bank would consider that the risks have become more balanced.
Mr Eaqub says the beginning of the tightening cycle will not be until the end of next year.