RBNZ Governor Hawkesby: Tariffs could impact New Zealand significantly

Reserve Bank of New Zealand (RBNZ) Governor Christian Hawkesby noted early Thursday that New Zealand's economy remains severely exposed to global trade fallout from US tariff policies.

Key highlights

Labour market data confirm activity is subdued.

We're aiming to complete review of bank capital requirement by the end of the year.

Strained functioning of global markets creates significant problems.

Supply-side impacts from tariffs could impact New Zealand significantly.

There is a lot of uncertainty about how the structural framework of the global economy realigns itself due to tariffs.

The most immediate impact is on confidence.

Labour market data did highlight the subdued nature of New Zealand's economy.

We are likely to revise down our projections for global economic activity.