According to Jin10 data, the Reserve Bank of New Zealand cut interest rates by 25 basis points on Wednesday, aiming to stimulate economic recovery. Economists warn that the economic recovery is under threat.
The Reserve Bank of New Zealand emphasizes that the trade war between the world's largest economies has heightened concerns about the global growth outlook. Increased global trade barriers have weakened the outlook for economic activity, posing downside risks to the New Zealand economy and inflation.
The central bank retains the possibility of further interest rate cuts, stating that the scope and effects of tariff policies have become clearer, giving the committee room to further lower the official cash rate at an appropriate time. Future policy decisions will depend on the outlook for medium-term inflationary pressures.