The question this week confronting the finance sector is ‘how much?'

Reserve Bank Governor Alan Bollard is to review the official cash rate on Thursday and it is likely that a cut will be made. This is evident from the unusual step taken by Prime Minister John Key last week when he commented on the need for a cut.

See weekly market update video below with IRG BOP's Jonathan York.

Usually the Prime Minister keeps clear of comment relating to the Reserve Bank and its decisions in the interests of institutional independence.

New Zealand is in an extraordinary situation, however, with the Christchurch earthquake of February 22 stifling the South Island economy and unsettling the national one.

Alan Bollard is expected to reduce the OCR by a quarter or a half point from the current three per cent rate.