Central Banks
RBNZ May Be Forced Into Deeper Rate Cuts by Global Trade Turmoil
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New Zealand’s central bank may be forced into deeper interest-rate cuts as US President Donald Trump’s sweeping tariffs and the prospect of a global trade war put the nation’s nascent economic recovery in jeopardy.
The Reserve Bank was already expected to lower its Official Cash Rate by 25 basis points to 3.5% on Wednesday in Wellington, but investors are now betting it will have to take it below 3% this year to buffer the economy. There’s even a small risk of a 50-point cut this week, swaps data show.