During the Autumn statement Osborne came under huge pressure as debt burdens continue to mount and UK growth forecasts have been cut. credit ratings agency Fitch has said that the UK failure to meet its debt targets have put the UK’s AAA credit rating at risk. Indeed, a cut to the rating could mean that the country is seen as more risky to lend money and therefore borrowing costs could rise causing further problems as we enter 2013. The Office for Budget Responsibility announced that the UK will miss its debt target of and the economy will contract by 0.1% this year, a massive difference compared to their prediction made in March when it claimed the economy would grow by 0.8% this year.Growth forecasts have been cut for the next 5 years so all in all the statement has been seen by the general economy as negative.
Tomorrow we see the release of both the UK interest rate decision and the ECB rate decision so any change could see a movement for GBPAUD and EURAUD exchange rates. For up to date exchange rate information feel free to contact me directly via email Tom Holian [email protected]