New Zealand's Reserve Bank has taken the firehose to the inflation fight, blasting the market with a higher rate rise than expected.
The RBNZ has gone with a 50 basis point increase, taking the OCR to 5.25 percent, surprising economists and the market.
It means a belt tightening exercise is on the way for mortgage holders, as demand continues to outstrip supply.
Kiwibank's chief economist Jarrod Kerr talks to Lisa Owen.
