Sterling fell on Thursday after Britain’s public finances for January turned out much worse than expected.

Figures showed Britain posted its first budget deficit for the month of January since records began in 1993. Analysts had forecast a surplus of 2.8 billion pounds.

British gross mortgage lending was also weak, falling to the lowest monthly total since February 2000.

“The UK public finances numbers are dreadful, plus the mortgage lending figures were bad too and sterling could continue to come under pressure,” said ING currency strategist Tom Levinson to Reuters.

At 10:40 GMT sterling was down 0.4 percent versus the dollar at $1.5601 after falling to a session low of 1.5575. Versus the euro, the pound was down 0.3 percent at 87.01 pence after falling to a session low of 87.16.

Levinson added the poor shape of the UK economy was coming back to the fore, putting pressure on the pound.

“Everyone is very focused on the euro zone fiscal situation at the moment, but the UK is in every bit as bad a shape, plus there is the political issue with the election coming up too.”

Sterling had been firm against the euro in early trade after Wednesday’s Bank of England minutes showed a decision to pause asset purchases was unanimous.

The minutes had come as a surprise to the market which had been expecting some dissension within the bank following recent dovish comments in the latest BoE inflation report.

“The minutes noted that the MPC would be able to provide further monetary stimulus should the outlook for inflation in the medium term warrant it, a clear risk for sterling,” said analysts at UBS in a note.

Last week, BoE Governor Mervyn King said it was far too soon to say quantitative easing was finished. Sentiment towards the pound remained precariously balanced.