According to Jinshi data, Stephen Toplis, head of research at the Reserve Bank of New Zealand, stated that the current uncertainty in the economic outlook largely stems from the fluctuations in President Trump's tariff policies. Toplis noted that the net impact of these policies on global economic growth is negative and has adverse effects on the New Zealand economy as well.
Toplis believes that the Reserve Bank of New Zealand has reason to lower its growth expectations and cut interest rates by 25 basis points on May 28, while suggesting that further cuts may be possible.