Government had to borrow almost £2 billion more than expected in August
The UK had to borrow £2 billion more than expected last month
The public sector new borrowing requirement for the month hit £11.6 billion according to the Office for National Statististics, higher than the £9.8 billion identified forecasts compiled by Bloomberg.
That was £3.5 billion higher year-on-year and the fourth-highest figure for August since records began in 1983.
But it ws also less than half of the record August figure for 2020, during the Coronavirus pandemic, when the furlough scheme lifted borrowing.
The interest payable on central government debt was £5.6 billion, £3.1 billion less than in August 2022, and £2.2 billion below the Office for Budget Responsibility’s forecast of £7.8 billion
Morning refresh: What you need to know to start the day
Good morning from the City desk of the Evening Standard.
All eyes are on the Bank of England today as its Monetary Policy Committee decides whether to raise interests rates for what might prove to be the last time this year.
Before yesterday’s inflation data, most analysts bets were leaning towards a 25 basis point rise by the BoE, according to Reuters estimates.
But then August CPI inflation fell to 6.7%, ONS data suggested, despite expectations of a rise to 7% or more. So as of last night, a slim majority now think there will be no change to interest rates.
Does that better-than-expected drop persuade the MPC it has done enough? Economists are already beginning to warn of the pain caused by further rate rises.
Any action will lift the cost of tracker-rate mortgages straight away, limiting consumers’s spending power. and the higher base rate also feeds through to the cost of millions of personal and corporate loans over time.
Here’s a summary of our top headlines from yesterday: