Federated Farmers say the economic effects of the drought should be a factor when the Reserve Bank makes its Official Cash Rate announcement on Thursday morning.
The rate has remained unchanged at 2.5% for two years and is not expected to rise today.
Since the benchmark interest rate was last reviewed six weeks ago, a state of drought has been declared in much of the North Island.
The cost to the country is put at beyond the billion dollar mark.
Federated Farmers president Bruce Wills says if it doesn't start raining soon, the long-term economic effect on the country will be serious.
Mr Wills says the drought is exacerbating problems for farmers already struggling with the strong New Zealand dollar.
He says he knows there's a lot to consider when projecting interest rates, but he hopes any predicted rise in the near future will be postponed so farmers and exporters can recover from the drought.
While no change to the cash rate is expected at this review, economists have suggested it will rise at some stage this year to counter booming property prices in Auckland and Christchurch.
Institute of Economic Research principal economist Shamubeel Eaqubsays now is not the time to react to housing when there are so many other risks, including the drought, that could derail the economy.
The managing director of real estate company, Barfoot and Thompson, Peter Thompson says the drought may delay the Reserve Bank raising the OCR.
However Mr Thompson says the rate will go up, whether that happens in six months or a year.
