Tuesday, June 28, 2016

UK CREDIT DOWNGRADE HAS LITTLE EFFECT IN MARKETS

UK government borrowing costs have fallen to historic lows, despite the country having its credit rating downgraded.

Britain lost its AAA rating with S&P, with the ratings agency expecting a hit to economic growth after the vote to leave the European Union.

A downgrade can sometimes mean a government will find it more expensive to borrow in international markets.

However, as Danny Cox from stockbroker Hargreaves Lansdown explains - the opposite has been happening.

IN: "In theory…
OUT: …low."
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