Moody's: UK’s credit profile vulnerable to new government’s spending plans

Global rating agency Moody’s recently came out with its report on the UK’s credit profile on Asian morning on Friday.

The research paper says that the UK’s credit profile is vulnerable to the new government’s tax and spending pledges amid no-deal Brexit risk.

It was further emphasized that the Prime Minister Boris Johnson's policy ambitions have yet to be followed up with concrete measures and the period leading up to the next budget announcement in October or November should provide more detail.

The UK currently holds an Aa2 stable credit rating from Moody’s.

FX implication

Given the present risk on no-deal Brexit and policy paralysis at the Bank of England (BOE), the latest news should have a negative impact on the British Pound (GBP). Though, no such reaction was witnessed off-late.