UK GDP held at 0.8% but deficit disappoints

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Sterling has fallen back below $1.69 after worse-than-expected borrowing figures disappointed those investors hoping for further confirmation the economy is back on track.

Public sector net borrowing figures from the Office for National Statistics - released at the same time as a second estimate of Q1 GDP that confirmed growth of 0.8% - show the government borrowed £11.5bn this April, up £1.9bn year-on-year. The figure, which excludes the "temporary effects of financial interventions" and other external factors, was worse than economists' expected figure of around £8.5bn. The pound fell against the dollar in response, dropping from $1.6909 to $1.687 following publication of the figures, but remains near at multi-year highs. "Since the OBR expects bor...

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