Institutions: Global turmoil has increased the likelihood of a larger rate cut by the Reserve Bank of New Zealand tomorrow.

Jin10 data reported on April 8th that the Reserve Bank of New Zealand is expected to lower its official cash rate by 25 basis points to 3.50% on Wednesday. However, growing concerns over the global trade war may prompt the Central Bank to further cut rates by 50 basis points. A Reuters survey conducted between March 31 and April 3, prior to the recent market dumping, indicated that all 31 analysts expected the Reserve Bank of New Zealand to cut rates by 25 basis points. Since August of last year, the bank has lowered rates by 175 basis points to revive the struggling economy and curb rising unemployment. Although the policy meeting in February hinted at a gradual exit from restrictive policies, the market currently expects the Central Bank to further cut rates by up to 100 basis points by 2025. The current market turmoil may accelerate this process.