On late Friday ratings agency Standard & Poor’s cut it outlook for its AA credit rating for British sovereign debt to “negative” from “stable”.
This is in response to new Prime Minister Truss’s tax cut plans that will ensure government debt will continue to rise.
- circa 45 billion pounds ($50 billion) of permanent, unfunded tax cuts were announced by Chancellor Kwarteng back on September 23, which sent shockwaves of selling through UK bond and currency (GBP) markets
- the Bank of England launched an emergency bond purchase programme on Wednesday to proper up Gilt markets
- GBP has recovered
