NZ c.bank raises rates 50 bps to over 14yr high, expects more
RBNZ still sees rates peak at 5.5, say inflation 39;too high39;
NZ dlr rallies, swap rates rise as markets see upside rate risk
RBNZ to look past shortterm price pressures from floods, cyclone

WELLINGTON, Feb 22 Reuters New Zealand39;s central bank raised interest rates by 50 basis points to a more than 14year high of 4.75 on Wednesday, and said it expects to keep tightening further as inflation remains too high, a hawkish signal that sent the local dollar surging.

The Reserve Bank of New Zealand RBNZ said it was too early to assess the policy implications of the recent devastating cyclone and floods in the country39;s North Island, and expects to look past the shortterm price pressures stemming from the extreme weather events.

The RBNZ continues to expect the official cash rate OCR to peak at 5.5 in 2023, according to the monetary policy statement MPS accompanying the rate decision. That would mark the most aggressive policy tightening streak since the official cash rate was introduced in 1999.

While there are early signs of price pressure easing, core consumer price inflation remains too high, employment is still beyond its maximum sustainable level, and nearterm inflation expectations remain elevated, the central bank said in a statement.

The decision was largely in line with a Reuters poll.

The latest policy statement from the RBNZ, which was among the first global central banks to withdraw…