Reserve Bank governor Graeme Wheeler has signalled an aggressive, front-loaded start to the interest rate cycle now under way.

This OCR hike is just the start of the cycle, says Herald economics editor Brian Fallow.

The New Zealand dollar jumped to a five-month high after the Reserve Bank raised the benchmark interest rate as expected and signalled further hikes are on the way.

The Kiwi dollar will stay at an elevated level for longer than previously thought as the local economic story finds favour with foreign investors.

New Zealand house prices rose in February reversing the falls of December and January, according to just released REINZ figures.

The New Zealand dollar advanced as investors gained confidence that tensions in Ukraine were easing, stoking demand for risk-sensitive assets.

Savers should expect to feel some relief from next week with economists predicting short-term deposit rates to head up in line with a predicted increase in the official cash rate.