Credit ratings agency Moody’s has downgraded the outlook for the UK government and the Bank of England from ‘stable’ to ‘negative’ amid the political and economic turmoil in the wake of the Mini Budget.
Moody's said the change in outlook was driven by "heightened unpredictability in policymaking amid weaker growth prospects and high inflation" and "risks to the UK's debt affordability from likely higher borrowing and risk of a sustained weakening in policy credibility". The agency noted that the Mini Budget, together with the subsequent reversal of most of the measures announced and the forthcoming change in prime minister, is a "continuing reflection of the weakening predictability of fiscal policymaking" seen in previous years. The report said: "Overall, the episode illustrates the...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
