UK May Borrowing Surges Past Forecasts as Debt Interest Hits £11.7bn

UK public borrowing exceeded forecasts in May, with debt interest costs jumping £4.1bn to £11.7bn driven by RPI inflation. Government spending on goods and services rose £2.2bn to £39.6bn, while social benefits increased £1.2bn to £28.4bn, both pressured by inflation. GBP/USD and EUR/GBP are the primary pairs to watch. Worse-than-expected fiscal data raises concerns about UK debt sustainability, potentially weighing on sterling as traders reassess the UK's fiscal headroom and the BoE's ability to cut rates.