adminagency Moody’s cut Britain’s credit rating from the top AAA level by one notch to AA1 last Friday.
The downgrade “do not necessarily affect the real economy but they do reflect the fact that we are going through a very difficult time”, Cable said.
Cable said the country now sees some “positive things,” including improving employment rate, export growth and business start-ups.
The government would maintain its current course, he added.
Earlier, Britain’s Chancellor of the Exchequer George Osborne has also said the downgrade strengthened the government’s commitment to stick to the current policies of reducing deficits and public spending.
Cable underlined that the United States and France had both survived similar cuts to their ratings in the past, meaning that downgrade is not necessarily to push up the borrowing costs of the British government.
Britain saw its economy shrink by 0,3 percent in the last quarter of 2012 and would enter a third recession since 2008 if it contracts again in the first quarter of 2013, experts said. – Xinhua.
Online Reporter