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UK credit downgrade provokes call for change

PTI London | Updated on February 23, 2013

Moody's downgraded UK's credit rating from the top AAA to AA1. Treasury Chief, George Osborne said the rating redoubled his commitment to cut spending to reduce deficits.

The man in charge of Britain’s economy says he won’t change direction despite a rating agency’s decision to downgrade the nation’s credit rating and spurned renewed calls from the opposition for more stimulus for a flat-lining economy.

Treasury Chief, George Osborne declared that the action by Moody’s Investors Service redoubled his commitment to the government’s policy of cutting spending in an effort to reduce deficits.

But Labour Party spokesman Ed Balls said today that the government should increase borrowing to give immediate stimulus to the economy.

Announcing the downgrade one notch from the top AAA to AA1 on yesterday, Moody’s said sluggish growth and rising debt were weakening the British economy’s medium term outlook.

Published on February 23, 2013

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