Fitch slashes its outlook for the Bank of England

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Fitch slashes its outlook for the Bank of England

<p>Fitch Ratings:</p><ul><li>revised its Outlook on the Bank of England's (BoE) Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to Negative from Stable</li><li>affirmed the IDR at 'AA-' </li></ul><p>Citing:</p><ul><li>
Says fiscal package announced as part of new UK govt's growth plan
could lead to significant increase in fiscal deficits over the medium
term</li><li>It forecasts average
inflation to increase to 8.9% in 2022 before gradually declining to
4% in 2024 for UK</li><li>It forecasts UK
economy to contract in 2023 despite energy tariff support and
proposed tax cuts</li><li>Says UK's deep
capital markets, absence of foreign debt and sterling's reserve
currency status underpin the sovereign's strong financing flexibility</li><li>says the reduced support for the ruling Con servitive party, the impact of cost living crisis among others could constrain the new UK PM's room for manoeuvre </li></ul>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: Fitch slashes its outlook for the Bank of England

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