Wall Street took its lead from the FTSE 100 (^FTSE) and European stocks on Tuesday, heading lower as the International Monetary Fund (IMF) said it believes the global battle against inflation has largely been won.
It stuck with its forecast for 3.2% global growth this year, although predicted growth in 2025 has been revised down from 3.3% to 3.2%.
It came as the UK borrowed £16.6bn last month to cover the difference between public sector spending and income. The figure was £2.1bn more than in September 2023 and the third highest September borrowing since monthly records began in January 1993.
It was also £1.5bn higher than the £15.1bn borrowing forecast by the Office for Budget Responsibility (OBR) for September, leaving chancellor Rachel Reeves in a difficult fiscal position ahead of the autumn budget.
So far this financial year, the UK has borrowed £79.6bn, which is £1.2bn more than at the same point in the last financial year. Meanwhile, the public borrowing figure for August was revised down from £13.7bn to £13bn.
Public sector net debt excluding public sector banks…
