Reserve Bank hikes official cash rate to 2.75%

The Reserve Bank has raised the official cash rate by a quarter percentage point to 2.75 percent.The rise was expected, with the central bank saying it needs to reduce economic stimulus to tackle high inflation.It says an economic recovery is underway and interest rates are still supporting that.The RBNZ has signalled further rate rises can be expected depending on the pace of economic growth and global events.The move upwards was widely predicted by economists, with focus turning to what the central bank thinks will happen next.