The Reserve Bank of New Zealand reduced its benchmark rate by a quarter-point, as expected on Wednesday, and hinted at further easing as recent increases in trade tariffs pose downside risks to economic outlook. The Monetary Policy Committee, led by acting governor Christian Hawkesby, decided to cut the Official Cash Rate by 25 basis points to 3.50 percent, which was the lowest since October 2022. The committee observed that a 25 basis-point reduction would be consistent with the mandate of maintaining low and stable inflation. The bank noted that inflation remains near the mid-point of the 1 to 3 percent target range and economic activity evolved largely as expected since the February meeting.