The NZX 50 fell 98 points, or 0.7%, to close at 13,665 on Wednesday, after being flat in the previous session, pulling back from a record high reached over the previous two consecutive sessions, following the RBNZ's decision to raise interest rates by 25 bps to 2.5%.
The central bank raised its cash rate for the first time in more than three years and signalled further tightening ahead to bring inflation back to target.
Traders also anticipated the release of the Fed's June meeting minutes for guidance on the outlook for interest rates.
Rising oil prices further pressured sentiment, as inflation concerns raised expectations of further interest rate hikes.
The broader index tracked Wall Street's overnight decline, amid a sell-off in chipmaker stocks.
Healthcare, financials, technology, and communication services mainly weighed on the index, with notable losses from Ventia Services Group (-2.8%), Fisher & Paykel (-2.6%), Infratil (-2.3%), and Freightways Group (-1.8%).