investors: So why is sterling under pressure What does it mean for you And why do we care about the UK credit rating Why is the pound weakening In simple terms, investors are worried about the UK economic prospects if it leaves the EU and so they are more reluctant to hold sterling-denominated assets, according to The Guardian. Even before the referendum outcome is known the economy could suffer, say economists. Ratings agency Moody has also warned that Britain strong credit score would be at risk if the public vote to leave the EU. On financial markets, investors are gearing up for choppy trading between now and the 23 June vote. Businesses do not like uncertainty and so exports, investment and overall growth could all be hampered, they say. But currency markets focus on near-term risks. Economists are not unanimous about a Brexit being negative for the economy, with some making the point that the UK could end up better off in the long term.
(news.financializer.com). As
reported in the news.
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