Moody's: UK’s credit profile vulnerable to new government’s spending plans
|Global rating agency Moody’s recently came out with its report on the UK’s credit profile on Asian morning on Friday.
The research paper says that the UK’s credit profile is vulnerable to the new government’s tax and spending pledges amid no-deal Brexit risk.
It was further emphasized that the Prime Minister Boris Johnson's policy ambitions have yet to be followed up with concrete measures and the period leading up to the next budget announcement in October or November should provide more detail.
The UK currently holds an Aa2 stable credit rating from Moody’s.
FX implication
Given the present risk on no-deal Brexit and policy paralysis at the Bank of England (BOE), the latest news should have a negative impact on the British Pound (GBP). Though, no such reaction was witnessed off-late.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.