The European debt crisis still concerns economists. ASB economist Jane Turner said offshore developments would again dominate the economic outlook.
"Given domestic events are largely as expected, the external outlook will again dominate the Reserve Bank's focus. Along with the never-ending euro-zone debt crisis, recent signs of slowdown in China may also concern the Reserve Bank," she said.
Westpac chief economist, Dominick Stephens said the OCR would be "firmly on hold" in Mr Bollard's last review as global conditions remain challenging.
"But the outlook for export prices is less gloomy than what the Reserve Bank was bracing for in its June forecasts."
The New Zealand economy seems to be on track for modest growth, but inflation remains very subdued.
"We expect the Reserve Bank's forecasts to continue to show soft but not disastrous global conditions, a modest pick-up in domestic growth, and interest rates on hold until around mid-2013," Mr Stephens said.
Ms Turner said the strength of the kiwi remained elevated, to the Reserve Bank's "frustration", and its lift since June was likely to see the bank push back the timing, and possibly the extent, of its projected increase in the 90-day interest rate.
"We still see the risks of a mid-2013 start to the tightening cycle and greater degree of OCR tightening than the Reserve Bank's likely forecasts. This year, policy decisions will remain dominated by frustratingly slow crisis resolution in Europe and the potential knock-on effects to the rest of the world," she said.
Mr Stephens said there had been signs of improvement in global conditions during the past few months - at least those most relevant to New Zealand.
Dairy prices at auction had risen 18% since their mid-July lows, due in part to poor weather in the US and other food producers. Fonterra's recent downgrade of its payout forecast for the 2012-13 season was the legacy of weak prices earlier in the year, but it is consistent with a modest pickup in prices from here on, he said.
