The UK has lost its top AAA credit
rating for the first time since 1978 on expectations that growth will “remain sluggish
over the next few years”.
The ratings agency Moody's became
the first to cut the UK from its highest rating, to Aa1.
Moody’s said the government's debt
reduction programme faced significant “challenges” ahead.
Chancellor George Osborne said the
decision was "a stark reminder of the debt problems facing our
country".
Osborne is absolutely right when he
says this downgrade is a reminder of the debt problems; however it’s also a
reminder that he’s not dealing with them properly.
Admittedly both the US and France
have shown losing the top rating isn’t as damaging as everyone might have expected
as it appeared to be damaging only in a symbolic sense, but this is certainly
another blow to Osborne and his economic strategy.
No comments:
Post a Comment