UK - Credit ratings prospect: Negative

Britain could be stripped of AAA credit rating within a year

Ed Balls warns of '1930s mistake' after Moody's move

With Osborne determined to stick to his policy of austerity after the decision by the Moody's rating agency to cut the UK's outlook to negative, the Treasury is relying heavily on the Bank to boost the economy with its £325bn policy of quantitative easing.

More on UK inflation falls as shops discount and VAT hike falls out