Moody’s cuts UK growth forecast

Ratings agency Moody’s has trimmed its growth forecasts for the UK due to the “rising challenges” faced by the coalition in reducing the country’s debts while the Eurozone crisis rumbles on. Moody’s, which has the UK on a negative outlook for its triple-A rating, expects the economy to grow 0.4 per cent this year, and by 1.8 per cent in 2013, it said in a credit opinion. It expects the UK to eventually return to a trend growth rate of 2.5 per cent.