• Privacy policy
  • T&C’s
  • About Us
    • FAQ
  • Contact us
  • Guest Content
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
    • Lottery Results
      • Lotto
      • Set For Life
      • Thunderball
      • EuroMillions
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
The London Economic
No Result
View All Result
Home Business and Economics

Moody’s deems UK’s new fiscal policy regime ‘credit negative’

“It appears everyone is unusually united in their objection to the Treasury’s tax-cutting plans."

Jack Peat by Jack Peat
2022-09-28 13:11
in Business and Economics
PA

PA

FacebookTwitterLinkedinEmailWhatsapp

Credit rating agency Moody’s has warned that the UK’s new fiscal policy regime is “credit negative” in another blow to chancellor Kwasi Kwarteng.

The pound took another hammering during early trade today while London’s blue-chip share index slumped into the red after the UK Government was heavily criticised by the International Monetary Fund over its handling of economic policy.

Sterling fell back to 1.06 US dollars at one stage, having recovered to 1.08 US dollars on Tuesday after Monday’s bloodbath saw it reach an all-time low against the greenback.

The FTSE 100 Index also fell sharply after opening on Wednesday, falling more than 2 per cent at one stage – down nearly 140 points at 6846.4 – and appearing to head for its lowest level for more than a year.

Craig Erlam, senior market analyst at OANDA, said: “It appears everyone is unusually united in their objection to the Treasury’s tax-cutting plans at a time when inflation is almost 10 per cent and rising.

“Moody’s was equally scathing, warning that the measures are a credit negative that could threaten the country’s credibility with investors and more permanently weaken the UK’s debt affordability.

“It’s no surprise then to see sterling plummet once more alongside Kwasi Kwarteng and Liz Truss’s credibility on the world stage. Not the best start to life in Downing Street.”

Moody’s posted its own warnings, saying: “A sustained confidence shock arising from market concerns over the credibility of the government’s fiscal strategy could permanently weaken the UK’s debt affordability.”

Read their update in full below:

RelatedPosts

Martin Lewis urges people born between 1986 and 2007 to put £1 in this bank account ‘ASAP’

Trump unveils $499 gold mobile phones for ‘real Americans’

No ‘millionaire exodus’ as a result of Labour policies, study finds

Shops could be forced to accept cash in future

Moody's the first of the major rating agencies to issue a UK warning following the mini-budgrt. It is not a credit downgrade but revision of their forecast: "We do not expect growth to return to its potential until 2026"

— Mehreen Khan (@MehreenKhn) September 27, 2022

Related: Bank of England launches emergency gilt market operation to prevent borrowing costs from spiralling out of control

Tags: headlinekwasi kwarteng

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

← Bank of England launches emergency gilt market operation to prevent borrowing costs from spiralling out of control ← People are sharing the ending to The Big Short
No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

-->