As we expected in our report issued yesterday evening, the markets largely await the Reserve Bank of New Zealand in the Asian session (what are the expected scenarios) (fayezalajmi-4x.com) The Monetary Policy Committee of the Reserve Bank of New Zealand (RBNZ) decided to raise the official interest rates OCR by 0.25% to 0.75% In his meeting less than two hours ago.

The statement issued by the bank indicated that the recent and prolonged closures in Auckland, Northland and Wakato had caused a sharp contraction in economic activity, but with the easing of restrictions now, the economy is expected to return to recovery.

The bank expects inflation to reach its peak at 5.7% in the fourth quarter of this year (annual inflation is at 4.9% now) before it declines over the next two years towards the bank’s target of 2% in the medium term, stressing that the inflation movements were greater than the bank’s expectations.

With regard to continuing the process of raising interest rates, the bank believes that there is a strong need for higher interest rates to achieve price stability and maximum employment.

It is expected that interest rates will be at 2% by the end of next year and reach 2.5% in the year 2023.

The New Zealand dollar has been trading on a decline since the announcement of the statement in the morning, and it is losing about 50 points against the US dollar, trading at 0.6895 levels, because a 25-point hike was calculated from a long period, and as we mentioned in the last report that unless there is a movement of 50 points, we are expected to see negativity in motion.