UK Public Sector Net Borrowing Slightly Better Than Consensus, GBR Strengthens Against the USD - 21.9.2012
UK Public Sector Net Borrowing (PSNB) rose to £12.36 billion in August up from a revised reduction of £1.92 billion in July according to the Office of National Statistics. The figure was slightly better than expected as market participants were expecting increase of PSNB to £13.3 billion. The PSNB excluding financial interventions increased to £14.4 billion in August compared to revised £0.1 billion increase in July while it was anticipated to increase to £15.00 billion. Also the Public Sector Current Deficit was £13.2 billion in August 2012 around £0.4 billion more than August 2011.
Lastly, the Public Sector Net Debt ex Financial Interventions rose to £1.039.5 billion at 66.1 per cent of the GDP in August. Due to the slightly better than expected PSNB the British pound against the greenback rose from 1.6234 to 1.6305 penetrating psychological level at 1.6300.