NZD/USD Drops to 0.8440 after ‘Slower Growth’ Comments

New Zealand will post smaller than expected budget surpluses over the coming four years as the economy grows more slowly and the tax take shrinks,Finance Minister Bill English said on Tuesday, triggering a slide in the kiwi dollar.

English said a surplus of NZ$297 million ($251.26 million) was now expected for the year to June 2015 compared with NZ$372 million forecast in the budget delivered in May.

Future surplus forecasts were also reduced by NZ$500 million a year in each of the next four years, while the government net debt level was expected to peak at a slightly higher level this year, with a slower rate of reduction in future years.


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