U.K. Public Finances Worse than Expected, Budget Surplus to the Lowest

Daily Forex Fundamentals | Written by DailyFX | Feb 19 09 10:16 GMT |

U.K. January public sector net borrowing came in worse than expected with a net lending figure of GBP3.34 bln versus a median estimate of 10.0 bln. Meanwhile, December data was revised to net borrowing of GBP16.5 bln versus 14.9 bln previously. However, the largest surprise of the January public finance data was a net cash repayment of GBP25.08 bln, far better than the Reuters median for 16.0 bln. We had expected a mere GBP3 bln net repayment, taking into account the government's share purchase of almost GBP17 bln in the newly formed Lloyds Banking Group, but the ONS said the purchase had been re-classified. Similarly, the December net cash requirement reading of GBP44.21 bln was revised to just 19.9 bln due to re-classification. Overall, public finance data is still showing deterioration and borrowing is set to surge as the economy deteriorates. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.