The New Zealand dollar stabilized around $0.585 on Thursday but retained most of the previous session’s losses after the Reserve Bank of New Zealand raised its official cash rate by 25 basis points to 2.75%. The increase was the second consecutive hike and lifted borrowing costs to their highest level in more than a year as policymakers continued responding to above-target inflation. Although the RBNZ indicated that further increases may be needed, its policy projections and forward guidance were more cautious than markets had expected, prompting a sharp selloff in the kiwi. Governor Anna Breman said there was no predetermined path for monetary policy and that the timing of any additional hike remained highly uncertain. New Zealand stocks were almost flat around 13,937, with gains in consumer staples, real estate and financials offsetting declines in energy, consumer discretionary and healthcare. Rising oil prices, Middle East tensions and falling terms of trade weighed on sentiment, while gains in major technology stocks on Wall Street provided support.