Increased tariffs pose significant risks to financial stability: RBNZ

RBNZ Governor Christian Hawkesby. (Image: NZME)

Wed, 07 May 2025

The Reserve Bank of New Zealand said in its latest Financial Stability Report that increased tariffs pose significant risks to the country's financial stability.Recent interest rate cuts are reducing borrowers' debt-servicing burden domestically, but this does not offset the risk from increased trade restrictions on financial stability.It noted that the direct impact of US tariffs on New Zealand exports could be severe for industries heavily exposed to US demand, although they are only a small part of the overall economy.US tariffs...

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