According to the Interfax news agency, Standard & Poor’s has downgraded the United Kingdom’s (Britain) credit rating from stable outlook to negative while maintaining its rating at AA.
The organisation assumed that British Prime Minister Liz Truss’s proposed tax cuts would result in the country’s ongoing high debt.
The British government announced a £45 billion unfunded tax cut in September, together with temporary subsidies for home and commercial energy costs, which caused the value of the pound and British bonds to decline.
The Bank of England (BoE) cautioned that it would need to dramatically hike interest rates in November after being forced to start an emergency asset purchase programme last week to stabilise markets.
From Interfax.
Standard & Poor’s updates its forecast for the UK
About Author
