New Zealand raises interest rates for the first time in seven years

Rate hike puts New Zealand ahead of most other developed economy nations as central banks look to wind back emergency-level borrowing costs

New Zealand's central bank has raised interest rates for the first time in seven years, signalling further tightening to come, as it looks to get on top of inflationary pressures and cool a red-hot housing market.

The 25 basis point rate rise on Wednesday marks the start of a tightening cycle that had been expected to begin in August, but was delayed after an outbreak of the coronavirus Delta variant and a lockdown that is continuing in its biggest city Auckland.