Official cash rate hiked to 1.5% by Reserve Bank

Source: 1News

The Reserve Bank has lifted the Official Cash Rate .50 basis points to 1.5%.

Various NZ dollar notes (file image)

The OCR sat at a record low of .25% for much of the pandemic, but the central bank's now lifted it for the fourth-consecutive time since October 2021.

It comes as the bank fights soaring inflation, currently sitting at a 30-year high of 5.9%, with predictions it could go higher next week.

House prices are falling and a tight labour market is also playing into the central bank’s thinking.

Experts had predicted a rise of either .25 or .50 basis points.