(Reuters) -Global ratings agency Moody’s affirmed the United Kingdom’s Aa3 rating on Friday, citing the significant credit strength of the world’s sixth-biggest economy and the government’s commitment to reducing the large budget deficit.

The agency maintained the country’s outlook at “stable”.

“The rating affirmation incorporates our expectation of fiscal measures consistent with the government-defined fiscal rules in the upcoming 2026 budget due to be presented on 26 November, which will help to keep the cost of debt moderate,” Moody’s said.

Finance minister Rachel Reeves, in her second annual budget, is expected by economists to raise taxes by 20 billion to 30 billion pounds to keep her budget goals on track.

Reeves has vowed to end borrowing to fund day-to-day spending by 2029-30,

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