The decision was in line with expectations, and it marked the third straight meeting in which the RBNZ has hiked the OCR.
The bank said it would continue additional tightening - although the pace of the increase will be determined by the trend of economic data.
"The speed and extent to which the OCR will need to rise will depend on future economic and financial data, and its implications for inflationary pressures. By increasing the OCR as needed to keep future average inflation near the 2% target mid-point, the Bank is seeking to ensure that the economic expansion can be sustained," Wheeler said.
The kiwi added almost 1% to hit more than a 1-year high of 1.5649 against the euro, reversing from an early low of 1.5807. On the upside, 1.545 is seen as next resistance level for the kiwi.
The kiwi climbed to 0.8651 against the greenback, its strongest since
The kiwi approached a 4-week high of 88.29 against yen, after having fallen to 87.19 at the beginning of Asian deals. The next possible upside target for the kiwi is seen around the 89.00 mark.
The NZ currency moved up to a fresh 2-week high of 1.0813 against the aussie, off its prior low of 1.0952. The kiwi is likely to find resistance at the 1.076 level.
The unemployment rate
The unemployment rate came in at 5.8% in May, the same rate as in April and March. Meanwhile, the number of employed people fell 4,800 over the month to 11,564,600.
Looking ahead, German wholesale price index for May, ECB monthly report and Eurozone industrial production for April are due in the European session.
US advance retail sales and import price index for May, as well as weekly jobless claims for the week ended
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