Favour over the past month. Weve seen sterling rise that will help temper the Price Pressures from imports. Weve also seen other pressures in the markets where theyve been raising some questions about the Bank Of Englands credibility, as in Mortgage Rates going up without decisions being made that has all calmed down, too. And the public s expectations of where inflation is going, which were really very high, have now begun to temper. So thats also going in the banks favour. But a crucial issue is that they have raised rates by 5 the impact of that has really taken some time to filter through into the economy, there is sort of turning the type of rate rises on. Turning the tap. We are beginning to see the impact of that now weve seen in the Housing Market, weve seen it in some corporate insolvencies too. So that all leads back to this Balancing Act between crushing inflation, but avoiding a downturn its a tight rope and we are probably approaching the most narrow, trickiest part of tha
unsustainable tra ectory. it s also important unsustainable trajectory. it s also important to point out the us lost its aaa crown back in 2011, and at the time there was a huge reaction of concern about what that meant whereas now, having been there before, it doesn t feel like such a big deal in terms of market reaction, you think? exactly, fitch didn t reaction, you think? exactly, fitch didn t tell reaction, you think? exactly, fitch didn t tell us reaction, you think? exactly, fitch didn t tell us anything l fitch didn t tell us anything we didn t already know. certainly we know about this position on us debt. janet yellen has a point, it doesn t change anything in terms of demand, they are still. but chris, uk demand, they are still. but chris, uk gdp demand, they are still. but chris, uk gdp data - demand, they are still. but chris, uk gdp data ratio is around 85%. the us is at 126% and it s likely to go up, that s what fitch is pointing out? , , . out? yes, they a
and with the risk of default still with us, the fitch rating industry has put the united states on notice. it s threatening to downgrade the united states aaa credit rating. yes, i know, moody has done that but fitch didn t. what exactly is that going to mean? the last time it happened, the s&p removed that sterling aaa credit rating, stocked nose-dived. but not much really changed in the long-run. we re all worried about what s going to happen when the clock strikes midnight tonight. no worries, no pumpkins. here is what could transpire and it is serious. the global stock market could crash. there could be a dploebl recession. money market funded could collapse which would result in a run on banks. some financial institution could fail and that could result in