The grading organisation “Due to political unpredictability and high inflation, Moody’s has downgraded Britain’s economic outlook from “stable” to “negative,” adding that the change in expectations was prompted by “the inability to predict policy-making, amid expectations of weaker growth and inflation and inflation.” Unlike the risks of being able to tolerate debts in Britain due to the potential for high borrowing and the risks of ongoing erosion of political credibility, “according to a report published by the British” Guardian, the high risks are that of continuous political ineptitude “today’s newspaper on a Saturday.
The expectation period extends between 12 and 18 months, and the rating, which is determined by the classification agencies, impacts the price at which governments must borrow money on global financial markets.
The Guardian notes that it is noteworthy that the rating company “Moody’s” has kept Britain’s credit rating at “AA3,” adding that this classification demonstrates the country’s economic flexibility, “even though the capacity to predict financial policy in recent years in recent years.”
According to the official data, the borrowing increased to 20 billion pounds in September, which was more than experts’ predictions of only 17 billion pounds and far higher than the 14. 8 billion pounds anticipated by the British Budget Office in March.
Moody’s agency explained that there is a reason behind its decision to change the economic view of Britain; The first is “the increasing danger to the credit file in Britain from the escalation of the inability to predict policies amid a volatile local political scene. ”
The potential of significant borrowing and the risk of ongoing inflation, she continued, “are rising risks to Britain’s capacity to sustain its debts.
The interest rate on the bonds that must be paid off within 30 years increased to more than 4%, making borrowing from the government more expensive, according to a report by the British Broadcasting Authority. The interest rate on the bonds that must be paid off within 5 years also increased to, to, to, to 5 years, to 5 years. 4. 09%..
Moody’s lower its classification to Britain to “negative” .. Discover the causes
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