The outlook for the economy looks positive and growth will head back towards three percent, according to the Institute of Economic Research's (NZIER) latest quarterly predictions.
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The Institute's forecast suggests parts of the economy, such as tourism, had picked up and were offsetting the weakness in dairy incomes, while key export markets such as China and the United States were chasing New Zealand produce.
Continued strong migration was also bolstering domestic activity.
NZIER senior economist Christina Leung said the country's economic glass was more than half-full, and she doesn't expect the Reserve Bank to need to cut rates more than once.
"With investor interest in assets is still very strong, we think it would be a mistake to go below 2.5%," he said.