Fitch keeps UK rating on hold at AA+

Credit ratings agency Fitch has held the UK’s rating at AA+ citing respectable economic growth and an improving labour market.

The UK was held at the second highest level as unemployment levels fell, gross domestic product grew and inflation is close to the government’s 2 per cent target since Fitch’s last review in December.

The agency said: "The UK's ratings are underpinned by its high-income, diversified and flexible economy as well as a high degree of political and social stability.

"Strong civil and policy institutions and a high degree of transparency enhance the predictability of the business and economic policy environment, which compares favourably with peers in the 'AA' category.

It added: "The credible monetary policy framework and sterling's international reserve currency status afford the UK a high degree of financial and economic policy flexibility."