The Reserve Bank's warning interest rates will keep rising

Governor Adrian Orr and his Monetary Policy Committee hiked the official cash rate half a point to 3 percent today.

But Orr says given inflation's likely to stay high longer, interest rates will also continue to rise - as the bank battles to rein in inflation.

He says the committee agreed it was appropriate to continue to tighten monetary conditions at pace, to maintain price stability and contribute to maximum sustainable employment.