By Lucy Craymer and Renju Jose

WELLINGTON (Reuters) -New Zealand’s central bank said on Thursday the effects of interest rate cuts on the local economy had been slower than expected with uncertainties swirling over tariffs hitting business and consumer confidence.

Higher tariffs and trade barriers have created a negative demand shock for the world, Reserve Bank of New Zealand (RBNZ) Governor Christian Hawkesby told a parliamentary committee.

The RBNZ on Wednesday cut its policy rate by 25 basis points to a three-year low of 3.00% and flagged further reductions in coming months. The central bank has slashed rates by 250 basis points since August 2024 to spur economic growth.

“What we’re seeing is the reaction to our interest rate cuts so far being a bit slower than we anticipated,” Hawk

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