Fitch Ratings:

  • revised its Outlook on the Bank of England's (BoE) Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to Negative from Stable
  • affirmed the IDR at 'AA-'


  • 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
  • It forecasts average inflation to increase to 8.9% in 2022 before gradually declining to 4% in 2024 for UK
  • It forecasts UK economy to contract in 2023 despite energy tariff support and proposed tax cuts
  • Says UK's deep capital markets, absence of foreign debt and sterling's reserve currency status underpin the sovereign's strong financing flexibility
  • 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
Liz Truss questions