The international rating agency Moody’s confirmed the rating of the UK at the level of “Aa3”, changing its outlook to “negative” from “stable”.

Deterioration of the forecast is due to “the growing unpredictability of the country’s political course in the context of deteriorating growth prospects and high inflation,” according to the press release of Moody’s.

The agency’s experts also see risks associated with the possibility of increasing government borrowing by the UK and the likelihood of a steady weakening of confidence in the country’s policy. At the same time, Moody’s notes the stability of the British economy, in connection with which it confirmed the country’s ratings.

The agency also changed the outlook on the ratings of the Bank of England to “negative” from “stable”, confirming the ratings of the Central Bank at the level of “Aa3”.

Moody’s rates the Bank of England at the same level as the UK, as the Central Bank “is a key part of the country’s economic policy”.

According to the agency’s experts, the Central Bank “will have to tighten monetary policy significantly, given the risk that inflation may become more persistent in the medium term.”

Tightening policy by the Bank of England will restrain economic growth in the UK, Moody’s noted.