RBA Governor Bullock and RBNZ’s Conway Cite Uncertainty, Tariffs Weigh on Investment and Inflation

The Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ) have both highlighted ongoing uncertainty in the global economic outlook as of mid-2025. RBA Governor Bullock stated that the board considers monetary policy to remain slightly restrictive but is uncertain about the extent, emphasizing unpredictability in the global economy and U.S. trade policy. Meanwhile, the RBNZ has noted that heightened global policy uncertainty and tariffs, particularly U.S. tariffs, are expected to slow global economic growth and impede New Zealand's economic recovery and inflation. RBNZ Chief Economist Conway indicated that the full impact of these tariffs is still being assessed, with uncertainty likely to reduce business investment and lower inflation in New Zealand. Both central banks continue to monitor evolving data closely amid elevated risks to the global economic outlook.