New Zealand raises interest rates 50 basis points to 3.5%

SYDNEY (Reuters) -- New Zealand's central bank on Wednesday lifted interest rates to a seven-year high and promised more pain to come as it struggles to cool red-hot inflation in an over-stretched economy.

The Reserve Bank of New Zealand's (RBNZ) policy committee raised its official cash rate by 50 basis points to 3.5%, the fifth such outsized move and the eighth hike in 12 months.