Economists are picking that the Reserve Bank will cut the Official Cash Rate from 3% to 2.5%, according to a news agency poll.
The expectation is that the cost of borrowing will stay there until it starts to rise again in the fourth quarter.
Economists also expect - the Reuters poll says - that the Christchurch earthquake will tip the already weak economy back into recession.
The International Monetary Fund says it's likely to cut New Zealand's growth forecast of 3% for 2011 as a result of the quake.
An IMF mission will visit New Zealand at the end of next week to do an economic assessment.