New Zealand interest rate hike raises pressure on central banks over inflation

RBNZ says homeowners must be incredibly wary' of rising costs, as focus shifts to policymakers in US, UK and Europe

New Zealand's central bank has lifted interest rates for the second time in as many months to 0.75%, with many forecasters expecting borrowing costs to rise to at least 2% by next year and possibly higher.

In a warning signal for central banks around the world as they struggle to contain inflationary pressures, the Reserve Bank of New Zealand (RBNZ) raised the official cash rate by 25 basis points to 0.75% as expected in its final policy meeting of the year on Wednesday.