It has been expected that the Reserve Bank will lift the Official Cash Rate, the next week. Though, the economy is moving at a slower pace, but still the raise will be implemented. It will be decided in Thursday's meeting, conducted by the Alan Bollard, Reserve Bank Governor.

The rate will be hiked by 25 basis points to 3%, as expected by the economists at Westpac. Westpac stated that in the first-quarter, GDP grew by 0.6%, low against the projected 0.8%. It is also expected that the second quarter results would also not meet the bank's forecasts.

In June, the Official Cash Rate was raised for the first time in two years by Bollard. The further rise was speculated, even after the same.

There has been an increase in the housing-related costs and high commodity prices and demand has been benefitting the export sector.

The data reflects that the economy is improving in a balanced manner.

It has also been declared that with the current state of economy and declared forecasts, the Government has decided to chuck out the prevailing monetary policy stimulus, a report says.

Westpac also advised that people should not consider another hike, based on their judgment on the previous hikes.

Over the next two years, the cash rate has been hoped to increase from 2.5% to a stable level of 5.5% to 6%.