In the context of trade uncertainty, the Reserve Bank of New Zealand has room for further interest rate cuts.

Jin10 data reported on May 19, the Reserve Bank of New Zealand’s research director Stephen Toplis stated that there is always a high degree of uncertainty in economic prospects, but such uncertainty as we see now is rare, largely due to the fluctuations in President Trump’s tariff policies. 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 on this basis alone, there is reason to believe that the Reserve Bank of New Zealand will lower its growth expectations. He further stated that the Reserve Bank of New Zealand has strong reasons to cut interest rates by 25 basis points on May 28, and then signal further rate cuts.