The Reserve Bank of New Zealand (RBNZ) stated on Tuesday that the economic conditions remain challenging and business is doing it tough. The New Zealand central bank also warns of the impact of geopolitical tensions on the economy. Key quotes Economic conditions remain challenging, business is doing it tough. Geopolitical tensions do really matter, key risk for the economy. RBNZ Governor Adrian Orr concerned as reduction in interest rates lags real economy. Climate change poses existential threat. Market reaction At the press time, the NZD/USD pair was down 0.06% on the day to trade at 0.5968.