Fitch drops credit outlook to ‘negative’ as bankers summoned to No 11

Pound falls to all-time low against US dollar

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The UK Government’s credit outlook has been dropped from “stable” to “negative” by ratings agency Fitch, as the Chancellor summons bankers to Downing Street. Fitch said last night: “The large and unfunded fiscal package announced as part of the new government’s growth plan could lead to a significant increase in fiscal deficits over the medium term.” The rating agency maintained its “AA-” credit rating for Britain, which is one notch lower than S&P’s. This comes as Kwasi Kwarteng summoned bankers to Downing Street after market turmoil sent mortgages to a 14-year high. The dollar fought for a footing in choppy trade on Thursday, with support from upbeat US data. The dollar rose 1 percent on the euro and 1.3 percent on sterling overnight and was trying to hold those gains in bumpy early trade in Asia.

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Fitch drops credit outlook to ‘negative’ as bankers summoned to Downing Street

The UK Government’s credit outlook has been dropped from “stable” to “negative” by ratings agency Fitch, as the Chancellor summons bankers to Downing Street.

Fitch said last night: “The large and unfunded fiscal package announced as part of the new government’s growth plan could lead to a significant increase in fiscal deficits over the medium term.”

The rating agency maintained its “AA-” credit rating for Britain, which is one notch lower than S&P’s.

This comes as Kwasi Kwarteng summoned bankers to Downing Street after market turmoil sent mortgages to a 14-year high.

The dollar fought for a footing in choppy trade on Thursday, with support from upbeat US data. The dollar rose 1 percent on the euro and 1.3 percent on sterling overnight and was trying to hold those gains in bumpy early trade in Asia.

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Good morning, I’m Olivia Stringer and I’ll be bringing you all the latest developments on the pound for the next eight hours. Please feel free to get in touch with me as I work if you have a story or tips to share! Your thoughts are always welcome.

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