* RBNZ raises rates to 0.75%, as expected

* Bank flags steady hikes over coming years

* Housing market concerns rising as mortgage rates increase (Updates with market reaction, context)

By Praveen Menon

WELLINGTON, Nov 24 (Reuters) - New Zealand's central bank raised interest rates for the second straight month on Wednesday to keep surging consumer prices in check and warned homeowners in the country's red hot housing market to get ready for more hikes.

The Reserve Bank of New Zealand (RBNZ) lifted the official cash rate (OCR) a quarter of a percentage point to 0.75% in the final policy meeting of the year, as the country shakes off its pandemic slump and prepares to reopen to the world.

Most economists in a Reuters poll predicted the RBNZ would raise rates by 25 basis points. Investors were more aggressively poised, pricing in a 40% chance of a 50 basis point hike, which meant the local dollar sold off after the smaller move was announced.

Indeed, RBNZ Governor Adrian Orr said the bank had considered a range of options, including a 50 basis point hike, but added the 25 basis point increase placed its "best foot forward".

"At the moment, with everything we have in our hands, we see steady steps of 25 basis points back to levels where the OCR is marginally above the neutral rate as the most balanced approach we can take," Orr told reporters after the meeting.

The RBNZ has said in its forecasts on Wednesday that rates would reach 2.5% by 2023 and go higher by December 2024.

"Given the heat in the economy we think the RBNZ is far from done," said Ben Udy, economist at Capital Economics. "We expect the Bank to continue to hike rates to hike next year to around 2.0% by the middle of next year."

Shortly before the RBNZ meeting, the government announced an easing of some of its tight border restrictions with people allowed to enter the country again from January.

The New Zealand dollar slipped 0.6% to $0.6905, as investors poised for a larger hike unwound positions. Swaps pricing sharply pulled back, with benchmark two-year swap rates dropping about 20 basis points.

Two-year government bond yields also fell about 10 basis points, as did 10-year yields.

Central banks globally are now reducing massive monetary stimulus introduced during the pandemic. In Asia-Pacific, South Korea and Singapore have also tightened policy in recent months as inflation pressures build.

South Korea's central bank is expected to raise interest rates again at its meeting on Thursday.

HOUSING CRISIS

Large amounts of fiscal and monetary stimulus injected to alleviate pandemic pain have helped New Zealand's economy recover strongly and pushed inflation to its highest and the jobless rate to its lowest in over a decade.