Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Arbuthnot Banking Group PLC
  6. News
  7. Summary
    ARBB   GB0007922338


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Public sector borrowing: debt interest payments jump in June

07/26/2021 | 05:28am EDT
Recent Press Releases

Members of the media can contact the Arbuthnot Banking Group for further information or to arrange an interview. We will respond to all enquiries as soon as possible.

Public sector borrowing: debt interest payments jump in June

Date: 26th July 2021

In this Perspective Ruth Lea, Economic Adviser to the Arbuthnot Banking Group, discusses the latest UK economic data:

· Public sector net borrowing (PSNB) was £22.8bn in June 2021 and, even though lower than in June 2020, it was still the second highest June borrowing since monthly records began in 1993.<_o3a_p>· Debt interest payments rose sharply in June 2021 to £8.7bn (compared with £2.7bn in June 2020), reflecting the higher payments on index-linked gilts (gilts linked to the RPI) as inflation has increased.<_o3a_p>· The PSNB for the first three months of FY2021 (March-June) is running some 20% below the OBR's expectations in March 2021.<_u13a_p><_o3a_p>· The IFS estimated that the PSNB for full year FY2021 may be some £30bn less than forecast by the OBR. But they warned that, even though the short-term outlook had improved, the medium-term was less favourable and 'the Chancellor was likely to have very little room for manoeuvre in his forthcoming Spending Review'. <_o3a_p>· Public sector net debt (PSND) continues to rise. At end-June PSND was £2,218.2bn, 99.7% of GDP, the highest ratio since the 102.5% recorded in March 1961.<_o3a_p>· Retail sales rose 0.5% (MOM) in June, after slipping in May.<_o3a_p>· The latest Markit survey suggests growth slowed in July, partly reflecting the impact of COVID isolation rules and other restrictions due to the pandemic.<_o3a_p>

International update:<_o3a_p>

· The latest Markit surveys for the Eurozone and the US show continued strong growth in July, albeit with some easing in the US.<_o3a_p>· At its July meeting the Governing Council of the ECB acted in order '…to underline its commitment to maintain a persistently accommodative monetary policy stance to meet its inflation target.' There were no policy changes. The inflationtarget was modified recently to be a symmetric 2% inflation target, compared with the previous 'close to but below 2%' target.<_o3a_p>· The Federal Open Market Committee (FOMC) meets this week. Interest will probably focus on the Fed's explanation for rising inflation (CPI inflation rose to 5.4% in June). To date, it has largely attributed higher inflation to 'transitory' effects. <_o3a_p>

Ruth Lea said 'Even though public borrowing is lower this year than last, it is still very substantial. And, even if borrowing comes in at around £200bn for FY2021, this is still around 9% of GDP. Moreover, the jump in debt interest payments in June reminds us just how vulnerable these payments are to higher inflation as well as higher interest rates.'<_o3a_p>


For full story: http://www.arbuthnotgroup.com/economic_perspectives_group.html

Press enquiries:

Arbuthnot Banking Group PLC:

Ruth Lea, Economic Adviser
07800 608 674, 020 8346 3482
Follow Ruth on Twitter @RuthLeaEcon

Sam Cartwright
020 7379 4415


Arbuthnot Banking Group plc published this content on 26 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2021 09:27:07 UTC.

© Publicnow 2021
09/13ARBUTHNOT BANKING : Disappointing GDP data in July, as the recovery slows
09/08HARDMAN & CO RESEARCH : Q&A with Mark Thomas on: Arbuthnot Banking Group (ARBB):..
09/08ARBUTHNOT BANKING : Raises $3.4 Million Via Secure Trust Bank Shares Sale
09/06ARBUTHNOT BANKING : Cautious households continued to save in July, whilst borrow..
08/31ARBUTHNOT BANKING : The recovery continues, though growth moderates
08/26ARBUTHNOT BANKING GROUP PLC : Ex-dividend day for interim dividend
08/23CPI ANNUAL INFLATION RATE WAS A LESS : but expect it to rise in coming months
08/18HARDMAN & CO RESEARCH : Arbuthnot Banking Group (ARBB): 1H'21 results: a return ..
08/16ARBUTHNOT BANKING : GDP rose 4.8% in 2021Q2, as lockdown restrictions were eased
08/02MPC AUGUST MEETING : focus on the inflation forecasts
More news
Analyst Recommendations on ARBUTHNOT BANKING GROUP PLC
More recommendations
Sales 2021 82,2 M 113 M 113 M
Net income 2021 4,37 M 6,01 M 6,01 M
Net Debt 2021 - - -
P/E ratio 2021 32,7x
Yield 2021 3,32%
Capitalization 140 M 193 M 193 M
Capi. / Sales 2021 1,70x
Capi. / Sales 2022 1,51x
Nbr of Employees 514
Free-Float 35,7%
Duration : Period :
Arbuthnot Banking Group PLC Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ARBUTHNOT BANKING GROUP PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 1
Last Close Price 935,00 GBX
Average target price 1 200,00 GBX
Spread / Average Target 28,3%
EPS Revisions
Managers and Directors
Henry Angest Executive Chairman & Chief Executive Officer
James Robert Cobb Group Finance Director & Executive Director
Andrew Alfred Salmon Chief Operating Officer & Executive Director
Christopher J. Meyer Independent Non-Executive Director
Ian Andrew Dewar Independent Non-Executive Director
Sector and Competitors