By Emily Hawkins
Pound sterling is up marginally against the US dollar at around $1.136 on Thursday morning after a lowered credit outlook from Fitch.
The ratings agency lowered its outlook for government debt to negative from stable, arguing the government’s latest growth could lead to a significant increase in fiscal deficits over the medium term.”
Sterling plunged to a record low against the US dollar last week.
The move comes just days after a similar one from rival Standard & Poor’s, after the government’s mini budget at the end of last month.
Fitch retained its AA- credit rating for the country.
“Although the government reversed the elimination of the 45p top rate tax … the government’s weakened political capital could further undermine the credibility of and support for the government’s fiscal strategy,” Fitch said.
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