New Zealand's central bank lowers its interest rate, citing Donald Trump's tariff chaos as a direct cause.
"The recent increases in tariffs and the uncertainty in global trade policy have weakened the outlook for global economic activity," the central bank motivates its decision.
The interest rate is lowered by 25 points, to 3.5 percent. The tariffs and the impending trade war will have a "significant negative impact" on global growth, according to the central bank. By lowering the interest rate, the bank hopes to support the New Zealand economy by stimulating domestic consumption.
Earlier on Tuesday, the New Zealand dollar fell to below 55 American cents, equivalent to around 5.5 kronor, which is its weakest level in about five years.
