Fitch lowers UK credit rating to 'negative' in light of Mini Budget

The agency cited the "large and unfunded" fiscal package announced as part of the new government's growth plan as a main driver for its decision, which it said could lead to a significant increase in fiscal deficits over the medium term. According to Fitch, the lack of independent budget forecasts, as well as an apparent clash with the Bank of England's efforts to fight inflation had "negatively impacted financial markets' confidence and the credibility of the policy framework, a key long-standing rating strength". On Monday (3 October), the chancellor Kwasi Kwarteng reversed the gove...