Fitch reduces UK credit estimate to negative due to shortage worries

(MENAFN) Fitch Ratings has reduced the UK's credit viewpoint from steady to negative, referring to the danger that the nation’s financial procedures are going to trigger its shortage higher.

"The large and unfunded fiscal package announced as part of the new government's growth plan could lead to a significant increase in fiscal deficits over the medium term," cautioned the global rating agency on Wednesday, announcing the UK’s rating at "AA-," the fourth-best rating.

it highlighted in an announcement that "And the inconsistency between fiscal and monetary policy stance given strong inflationary pressures, have in Fitch's view, negatively impacted financial markets' confidence and the credibility of the policy framework, a key long-standing rating strength."

In a sudden change, this week the British administration scrapped a suggested reduction on the top tax rate of 45 percent.

The dramatic verdict came after a 10 days of financial turmoil in the nation and the UK pound dropping to a significant low versus the US dollar.

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