UK June PSNBR GBP 6.3bln vs 4.9bln expected

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.