9 Nov 2017 RBNZ Give Hawkish Signal, NZD / USD Racing The Central Bank of New Zealand (RBNZ) decided to keep its interest rate level in a monetary policy meeting that results announced Thursday (09 / Nov) this morning. This policy has been expected by the market. However, the RBNZ acknowledges that a number of improvements in certain sectors of the economy are the result of a fall in New Zealand Dollar and rising commodity prices. Nevertheless, the central bank even signaled the need to raise interest rates slightly earlier than expected, along with an upbeat forecast for inflation. "Monetary policy will be maintained accommodative within the required timeframe," said Governor Plt. RBNZ, Grant Spencer. The RBNZ interest rate is maintained at a low of 1.75 percent. However, given the New Zealand Dollar exchange rate sduah slack since last August, if it continues, then tradable inflation could increase and make growth more balanced. New Zealand Dollar Increases In response to this, New Zealand Dollar looks skyrocketed against the US Dollar. NZD / USD soared near its highest level since October 24, and traded in the 0.6964 range as the news was written, leaving the low 0.6914 level formed before the release of the RBNZ meeting. According to Imre Speizer, currency specialist at Westpac, RBNZ clearly shows more hawkish sentiment than market expectations. Therefore, the Kiwi experienced a sharp rally. The New Zealand dollar has plummeted 7 percent since the end of July, while the newly-elected coalition of New Zealand governments is poised to increase spending and investment. This can lead to an increase in inflation coupled with a weakening of growth. Therefore, an increase in interest rates in a faster time is expected to create a balance of New Zealand's economy. Investors and economists predicted most of the RBNZ rate hike will be implemented by the end of 2018.