The Reserve Bank has lifted the Official Cash Rate in three years.  The Bank has lifted it from the 25 basis points 2.75%.This move of the bank has caused the rate rise, within 24 hours.

All the key banks of New Zealand have admitted that they are evaluating their rates, but none of the banks made a confirmation, whether they would lift the rates.

The average rate for all the key banks was 5.87% earlier and the two years fixed rate for all these banks were 7.3%.This major lift by the  bank has surprised the market spectators. One of the analysts has mentioned it as Mexican stand-off. It is for the first time in the last three years, that bank has lifted the rates, so the same is extremely surprising

"I think most people would say banks are quick to put their rates up and slow to put them down", said UBS New Zealand Economist, Robin Clements.

New Zealand's dollar has increased after this lift of rates. Market watchers have called this move of the Reserve bank as one of the better fundamental news from Asia.

Kiwi Dollar dipped to 68.23 U.S. cents today, this was 68.67 cents on Thursday.