Moody's: UK's economic recovery will remain slow

The statement from Moody's confirming Britain's downgraded credit rating highlighted the problems the weak medium-term economic outlook poses for deficit reduction plans.

The agency said it now expects the "period of sluggish growth" to "extend into the second half of the decade", adding:

Moody's says that the country's current economic recovery has already proven to be significantly slower - and believes that it will likely remain so - compared with the recovery observed after previous recessions, such as those of the 1970s, early 1980s and early 1990s.

– Moody's

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UK's credit rating downgraded

Britain's credit rating has been downgraded from the top AAA rating to AA1 by the Moody's credit rating agency.