New Zealand's central bank said on Thursday the effects of interest rate cuts on the local economy had been slower than expected with uncertainties swirling over tariffs hitting business and consumer confidence.

New Zealand’s central bank said today (August 11) that it may cut around a fifth of its staff within two months after its funding was slashed earlier this year. The Reserve Bank of New Zealand (RBNZ) said it had proposed to reduce the number of roles by 142, of which 35 would be currently vacant positions.

The Reserve Bank of New Zealand delivered another interest-rate cut, extending an aggressive cycle that began midway through last year as the economy struggles to gain momentum.