News effect of NZD related market

[Profitable Forex]

The central bank has increased the official cash rate or interest rate of the New Zealand dollar by 0.50%. Although the expectation was to increase by 0.25%, the increase of 0.50% is quite surprising. Such a big decision has been taken due to high inflation and stagnant job market. And with the interest rate hike, the NZD is starting to strengthen and the huge gap in the NZD pair has closed. The current rate is 5.25% which has been increased to 5% post-Covid-19.

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[skrimon]

The decision by the central bank to increase the New Zealand dollar's official cash rate by 0.50% is quite surprising, considering the expectation was for a 0.25% increase. This significant step was taken due to high inflation and a stagnant job market. As a result of the interest rate hike, the NZD is strengthening and the substantial gap in the NZD pair has closed. The current rate stands at 5.25%, up from the pre-Covid-19 rate of 5%.