In the context of trade uncertainty, the Reserve Bank of New Zealand has room for further interest rate cuts.
On May 19, Jin10 reported that Stephen Toplis, head of research at the Reserve Bank of New Zealand, stated that there is always significant uncertainty in economic prospects, but the current level of uncertainty is rare, largely due to the fluctuation of President Trump's tariff policy. He added that the net impact of Trump's policies is negative for global economic growth, and therefore for New Zealand as well. Toplis indicated that there is reason to believe that the Reserve Bank of New Zealand will lower its growth expectations based solely on this basis. He added that the Reserve Bank of New Zealand has strong reasons to cut interest rates by 25 basis points on May 28, and then hint at further rate cuts.