The UK’s deepening recession will cost the country its cherished triple-A credit rating, leading bond investors warned, after output fell 0.7 per cent in the three months through June.
Major investors said that the foundering economy, which economists had projected would shrink 0.2 per cent in the second quarter, is confounding the government’s ambitious austerity programme and will probably spur Moody’s to strip the UK of its top rating.
The agency put the UK on negative outlook in February this year.
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