Federated Farmers has issued its usual pre-OCR announcement – imploring Reserve Bank Governor Alan Bollard to keep the Official Cash Rate where it is.

The OCR is sitting at three per cent and the Feds want it to stay there while the economy recovers.

Economics spokesperson Philip York says  if the economy was in a better state, they’d be happy to see the rate rise.

“We would be the first people to say it needed to be raised if it does, but at the moment we think that the inflationary part of it is out of the economy."

Mr York says the biggest concern is the cost of non-tradeable commodities such as electricity, and New Zealand should follow other countries and keep prices in check.

"Inflation is usually caused by too much money chasing too few goods, but at the moment we don’t see that situation.

"Rather than bring in the sledgehammer, we’d like people to be responsible, particularly around non-tradeables, to make sure they don’t inflate.

"That way, we can probably continue to use low interest rates for quite a while.”

The next OCR announcement is on Thursday morning.