Slight inflation lift won't stop rate cuts thanks to trade war

More rate cuts are expected courtesy of US President Donald Trump’s trade war. (Image: Getty)

Thu, 17 Apr 2025

Annual inflation likely ticked up in the first quarter, but several economists say there could be even more rate cuts thanks to US President Donald Trump’s trade war.UBS economists expect headline CPI to modestly accelerate to 2.4% from 2.2% in the December quarter but say “this is not a barrier to deeper” Reserve Bank of New Zealand (RBNZ) cuts. The RBNZ is mandated to keep inflation between 1% and 3%. Regarding the trade war, UBS noted RBNZ chief economist Paul Conway reaffirmed this week “the likely impacts...

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