The Treasury Minister has expressed concern a rise in inflation could be triggered after the UK lost its top credit rating for the first time since 1978.
Ratings agency Moody's became the first to cut the UK from its highest rating, on expectations that growth will remain sluggish over the next few years.
The Island was also downgraded to AA+ just over a year ago by the agency Standard and Poor's.
Eddie Teare says a fall in the value of sterling has produced mounting inflationary pressures recently .
He says financial markets knew a downgrade of the UK's sovereign rating was just a matter of time.