Market insights

UK Borrowing Much Lower Than Expected - MI230124

In December the UK Government borrowed £7.8 billion versus the expected £14 billion.

The unexpected drop was put down to lowering inflation towards the end of 2023.

This also offers the Chancellor, Jeremy Hunt, a bit of room to consider tax cuts in his Spring budget.

This didn't have a huge effect on Pound rates. However this could also be down to Sterling trading towards the top of the recent ranges especially versus the Euro where it looks like a breakout will be needed to push past the technical line of resistance the rate has paused at for now.

Today sees another relatively light day for news with a couple of bits that may affect certain currencies,

There's the ECB Bank Lending Survey followed by the Eurozone consumer confidence reading.

Other than that it's the New Zealand inflation number out later this evening where analysts are predicting annualised growth of 4.7%.

Business news centres on the Government borrowing alongside the prediction that some consumers may have their electricity supply cut off especially if they use a prepaid meter.

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Economic calendar

EUR: 09:00 ECB Bank Lending Survey

EUR: 15:00 Consumer Confidence

NZ: 21:45 Inflation Report

As ever we look forward to keeping you in the loop and look out for our next update.

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