Fitch the rating agency has cautioned Britain that is day by day moving close towards going away from its sovereign rating of credit which is in point of fact gold-plated. The prime reason behind this is being said that the growth of the economy of the country is very slow as well as the borrowings of the costs of the government are only going upwards.
Fitch has given a reconfirmation that till date the outcome has only been negative in figurers and there are very little chances that the condition is going to remain the same only. contrary to this, the condition might get worsened. Earlier, they had given their rating as being 0.8 Per cent but a few days back they had lowered their rating of growth in the present year that is 2012, to 0.8 per cent. Along with this, they have also given another warning that debt of the international level may go up to 100 per cent of the Gross Domestic Product.
Along with this, the rating agency also has predicted that it is very much possible that George Osborne, the Chancellor is going to absolutely miss his financial rule of meeting his target of lowering down the debt of the nation. But they also did not say that austerity measures are going to help out in any manner in this regard.
Fitch has not downgraded till date the rating of UK and they have also tolerated the event of the reduction of debts that has happened sometime back only. all this very clearly means that they have given a nod to the Chancellor can very well break away the pledge which he had taken about his target of debt reduction of the country. All these talks have come up after the comments which were given by Sir Mervyn King who is the Governor of the Bank of England when he had said that it is completely fine if the Chancellor is going to break his rules even if it means that the economy of the world might go on a downward flow. Apply with no guarantor loans and get quick monetary support.
The government has been very quick in giving a reply to such kind of an announcement where they have adopted good amount of austerity measures. The concerned authority of the Treasury had to say that it more amount of pressure is given on making an addition to the credit of the nation and its bill but then it is going to harm the credibility of the country on a global level.
Jacky Gibson is finance manger and he writes for tfs loans .
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