FINANCIAL TIMES: Moody’s Investors’ Service stripped the UK of its triple-A credit rating, saying sluggish economic growth and austerity will continue to affect the government’s finances into the second half of the decade…
Bart Oosterveld, managing director of sovereign ratings at Moody’s, said the prospect of sluggish economic growth extending into the medium-term had increased the risk that the government would not be successful in reducing the UK’s debt-to-GDP ratio and would hurt its ability to absorb further shocks.
Moody’s also cited the coalition’s “significant policy commitment to austerity” as a “drag” on the economy, along with deleveraging by the private sector… (more)
EDITOR: Once again we see how austerity during recessionary times makes things worse.
