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Britain clings to deficit-cutting drive despite AAA loss

Published on Feb 23, 2013 10:25 PM
 
A pedestrian walks past Britain's Treasury building in central London on Feb 23, 2013. British finance minister George Osborne insisted Saturday that he would not abandon his deficit-cutting drive after Moody's stripped the country of its coveted triple-A debt rating. -- PHOTO: REUTERS

LONDON (AFP) - British finance minister George Osborne insisted Saturday that he would not abandon his deficit-cutting drive after Moody's stripped the country of its coveted triple-A debt rating.

The opposition lashed Osborne, saying his plan for the economy was shot through, while analysts said that although it was an embarrassment for him, the downgrade would have a limited impact in the markets.

In an expected rebuff to London's hopes that sharp spending cuts would both gradually eliminate the deficit and revive growth, Moody's rating agency cut Britain's grade by one notch to Aa1 on Friday.

Osborne said it was a "loud and clear message that Britain cannot let up in dealing with its debts, dealing with its problems, cannot let up in making sure that Britain can pay its way in the world.

 
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