The New Zealand dollar slipped today on the speculation that the New Zealand policy makers would refrain from increasing the interest rates because of the slower economic growth.

The New Zealand budget deficit was NZ$7.45 billion ($5.7 billion) in the four months ended October 31st. That’s NZ$798 million more than was predicted in May. The deficit together with the slower household consumption and business borrowing decreases the possibility of the interest rates hike and puts the downward pressure on the New Zealand currency.

NZD/USD dropped from 0.7644 to 0.7606 as of 9:37 GMT today.

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