Shares slump as rate hike looms

The S&P/NZX 50 Index fell 132 points, or 1%, to 12,607.64. Turnover was $146 million.

Climbing interest rates have been weighing down the local equity market which has failed to make any lasting gains since this time last year.

On Wednesday, the central bank will release its November Monetary Policy Statement which was widely expected to contain a 0.25% increase to the official cash rate (OCR).

However, strong inflation expectations and a near-record-low unemployment rate have seen investors predicting a 45% chance of a 50-basis point hike.