Moody's: Budget supportive of U.K. Triple-A rating

Discussion in 'Economics' started by ASusilovic, Jun 23, 2010.

  1. LONDON (MarketWatch) -- Moody's Investors Service today said that the U.K. budget is supportive of the country's Aaa rating and stable outlook because it is a key step towards reversing the significant deterioration in the government's financial position that occurred over the past two years. The budget is also broadly in line with expectations, both in terms of the mix of spending cuts and tax increases, and in its more downbeat economic growth projections. "Successful implementation would return the government's finances to a more sustainable trend," said Kenneth Orchard, senior credit officer.

    Sure, with unrealistic growth projections EVERY budget is "supportive" for AAA ratings... :cool:
  2. Why do you say the growth projections are unrealistic? I would have thought that the OBR numbers are somewhat on the conservative side.