RBNZ Rate Hike Triggers Kiwi Sell-Off

The Reserve Bank of New Zealand (RBNZ) raised its official cash rate by 25 basis points to 2.75% on Wednesday, in line with market expectations.

This marks the second consecutive rate hike and the second increase this year, following a similar move in July.

The decision sent the New Zealand dollar lower, falling about 0.6% to 0.586, while the S&P/NZX-50 index was little changed.

The RBNZ signaled that further rate increases are possible but not locked in, citing inflation as the main reason for tightening.