Trump’s Liberation Day move depresses NZ wholesale interest rates, Kiwi dollar

President Donald Trump’s “Liberation Day” tariffs have led to a decrease in local interest rates and the New Zealand dollar. The Reserve Bank (RBNZ) is expected to announce a 25-basis-point cut to 3.50% in response to the ongoing fallout from the tariffs, with the possibility of a 50-basis-point reduction being priced in by the market due to concerns about economic recovery and global growth prospects. World sharemarkets have been affected by the tariff announcement, causing volatility in interest rates and currency markets, with the New Zealand dollar trading at US55.60c, down from US57.70c before the tariffs were implemented.

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