Credit ratings agency Moody’s has downgraded the UK Government’s bond rating from stable to negative on Saturday in the wake of the country’s vote to leave the European Union.
Ratings agency Moody’s said the result would herald “a prolonged period of uncertainty” for the UK with “negative implications for the country’s medium-term growth outlook”.
The agency warns Britain’s economic growth will be weaker, its economic policymaking may be diminished and the government’s fiscal strength reduced.
The agency also affirmed Britain would remain on the AA+ rating, three years after it cut Britain’s AAA rating.
Retailers warned that there is a possibility of increase in petrol prices by 2p-3p a litre because of the pound’s fall against the dollar.
Meanwhile, US stocks finished a bruising trading session with the benchmark S&P 500 sliding 3.6 per cent to 2,037, the steepest one-day decline since last August. The US dollar posted one of its biggest rallies on record, and gold prices shot higher. The yield on the 10-year US Treasury dropped 18bps to 1.57 per cent.