New Zealand raises interest rates 50 bps, signals more aggressive hikes

New Zealand's central bank raised interest rates by 50 basis points to 2.0% on Wednesday, its fifth rate hike in a row as it seeks to get on top of inflation and signaled the cash rate would peak at a higher level than previously forecast.

All but one of 21 economists in the Reuters poll forecast the Reserve Bank of New Zealand (RBNZ) would hike the official cash rate (OCR) by 50 basis points to 2.0%. One economist expected a 25 basis point hike.

"A larger and earlier increase in the OCR reduces the risk of inflation becoming persistent, while also providing