(Bloomberg) -- The Reserve Bank of New Zealand forecast home prices will keep sliding, as it hiked interest rates by half a point for the fourth straight meeting. 

“The central projection assumes that prices will continue to decline until the September 2023 quarter,” the RBNZ said in a release. “This would result in a total decline of 15 percent from the December 2021 quarter peak, slightly more than assumed in the May Statement.”

The Real Estate Institute’s price index slid 2.9% from a year earlier, the first fall since 2011, the group said last week. The gauge has dropped for five consecutive months. 

The central bank acknowledged that “higher interest rates and rising costs of living are putting pressure on household finances” and will affect both spending and home prices.

“House prices have steadily dropped from high levels since November last year, and are expected to keep falling over the coming year towards more sustainable levels,” it said.

Read: New Zealand House Prices Fall for First Time in 11 Years

For more on the Reserve Bank of New Zealand Rate Decision, click here for our TOPLive blog.

©2022 Bloomberg L.P.