UK June government borrowing data now out 21 July
- GBP 7.0bln prev revised up from 6.7bln
- PSNBR ex banking groups GBP 6.3bln vs 6.4bln prev revised up from 6.0bln
- PSNCR (public finances) GBP 18.3bln vs 13.4bln prev
- NCR (central govt)
- debt interest cost up 33% annualised to GBP 4.9bln, highest for any June since 2011
Bigger than expected deficit. Rising inflation means govt paying more interest on its debt/index-linked bonds and not going to help fin min Hammond balance the books.
GBPUSD currently back up testing 1.3000 again as EURGBP fails to bounce too far from 0.8955 lows.
