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Without additional Treasury borrowing, "it's impossible to get beyond Nov. 1," Ms. Girard said.
But if the inflation outlook is so benign, why have Treasury borrowing rates skyrocketed in the last few months?
Since the Federal Reserve has reduced its policy rate to historic lows, the short-term anchor of Treasury borrowing costs has mechanically fallen.
After wobbling on remedies for Northern Rock and other problems they settled for demanding early retrenchment to cut public debt and maintain confidence in Treasury borrowing.
That seemed to have caught investors by surprise, even though the growing government surpluses signaled that Treasury borrowing had to decline.
The uncertainty created by the Brexit vote has left the public finances with a looming black hole that could mean the Treasury borrowing more than £100bn over the life of the parliament.
Similar(46)
In calendar year 2007, the Treasury borrowed a net $237 billion.
When the Treasury borrows from the trust fund surplus, it must honor its bonds, thus raising the deficit.
Consumers are refinancing their mortgages for not much more than the Treasury borrows money.
"Higher borrowing costs will go up disproportionately for riskier investments".
The Housing Revenue Account borrowing limit will be raised by £300m.
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