New Zealand’s central bank is expected to cut its official cash rate by 25 basis points to 3.50% on Wednesday and economists say the bank could make more cuts in 2025 as it reacts to U.S. tariffs and their potential global economic fallout.

The Reserve Bank of New Zealand lowered interest rates on Wednesday, making it one of the first central banks to respond to the growing economic threats posed by the escalating trade war.

Worries about economic growth fueled by U.S. President Donald Trump’s tariff onslaught will likely push the European Central Bank to cut interest rates on Thursday for a sixth straight time to make cr