New Zealand's official cash rate has been lifted to 3.5%, the Reserve Bank announced on Wednesday afternoon.
The new OCR is an increase of 50 basis points from the previous OCR of 3%.
It's the eighth consecutive time the Reserve Bank opted for a rates rise, and sixth increase in 2022 alone - February, April, May, July and August saw similar action.
In a statement today, RBNZ said "it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability and contribute to maximum sustainable employment.
"Core consumer price inflation is too high and labour resources are scarce."
RBNZ cited the war in Ukraine and stubbornly high global consumer price pressures for the OCR hike today.
Ahead of today's announcement, many economists predicted the Reserve Bank would hike the rate in a bid to tackle inflation - which rose to 7.3% in July, a 32-year high.
The OCR effectively sets the bar for interest rates New Zealanders pay on loans.
On Monday, ASB chief economist Nick Tuffley said the Reserve Bank's reasoning will remain the same as last month.
"The RBNZ will keep lifting the OCR until it is 'confident there is sufficient restraint' in place, and it is 'resolute' in meeting its remit'," Tuffley said.
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