Moody's Investors Service downgraded the U.K.'s AAA bond ratings by one notch, citing challenges to fiscal consolidation emanating from weak growth. The outlook on the ratings is now stable.
Moody's said the sluggish economic growth is likely to extend into the second half of the decade and in turn posing challenges to government's fiscal consolidation programme.
As a consequence of the UK's high and rising debt burden, a deterioration is expected in the shock-absorption capacity of the government's balance sheet, which is unlikely to reverse before 2016, it said.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.