20 Jun 2014
Any surprises in UK PSNB data likely to be more market moving than usual - TD Securities
FXStreet (Łódź) - Prashant Newnaha, Asia-Pacific Macro Strategist at TD Securities believes that there are balanced risks to the UK Public Sector Net Borrowing data, to be released later today and expected to show the headline measure print at £8.7B.
Key quotes
"Any surprises are likely to be more market moving than usual as we should get the first clean tax receipt reading for some time, as base effects drop out following last year’s reduction in the top rate of income tax from 50% to 45%."
"Any surprise is likely to be extrapolated to re-base economists’ fiscal forecasts for the year, and will give a better handle on any potential modifications to gilt supply later this year."
"The release will also be the first to have a concurrent release of the new methodology for measuring public finance data."
Key quotes
"Any surprises are likely to be more market moving than usual as we should get the first clean tax receipt reading for some time, as base effects drop out following last year’s reduction in the top rate of income tax from 50% to 45%."
"Any surprise is likely to be extrapolated to re-base economists’ fiscal forecasts for the year, and will give a better handle on any potential modifications to gilt supply later this year."
"The release will also be the first to have a concurrent release of the new methodology for measuring public finance data."