UK 'need not fear loss of AAA status'
Britain has no reason to fear a spike in borrowing costs if stripped of its AAA credit rating, the Government's fiscal watchdog suggested today.
"It's not entirely clear that [a downgrade] would be providing any new information to the markets that they hadn't already managed to deduce," the chairman of the Office for Budget Responsibility, Robert Chote, told the Treasury Select Committee today.
At last week's Autumn Statement the Chancellor, George Osborne, conceded he is likely to miss his self-imposed target of putting the national debt on a falling trajectory as a share of GDP by 2015-16.
Fitch warned that this "weakens the credibility of the UK's fiscal framework" prompting speculation that the agency will downgrade the UK next year. Some eurozone nations have seen their borrowing costs spike after downgrades.
But Mr Chote pointed out that the United States and France had not seen their borrowing costs increase after losing their AAA status. He also suggested to MPs that a country like the UK, which can print its own currency, is unlikely to default.
- 1 Woman accidentally shoots herself in the head while posing for a selfie
- 2 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 4 Female Muay Thai champion hustles coaches to give them a beating
- 5 16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
Female Muay Thai champion hustles coaches to give them a beating
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...