Banks, commodity-linked stocks lead London's FTSE 100 lower

(Reuters) - UK's FTSE 100 tumbled on Wednesday, dragged by banks, oil majors and mining stocks, while sentiment was further dented by strong criticism from the International Monetary Fund (IMF) and ratings agency Moody's against tax cuts initiated by the government.

The blue-chip FTSE 100 dropped 1.0%, while the more domestically oriented FTSE 250 shed 1.2% by 0709 GMT.

The energy and mining sector slid 1.5% and 1.7%, respectively, as a strengthening dollar weighed on metal prices, while oil supply cuts caused by Hurricane Ian further hurt crude prices. [O/R] [MET/L]

The IMF, which had bailed the British economy in 1976, made it clear that at this economic juncture fiscal policy should not work against monetary policy.

Moody's said that large unfunded tax cuts were "credit negative" for the United Kingdom and further questioned the credibility of the government's fiscal strategy.

Economy-sensitive banking stocks declined 2.2%.

Retailers fell 2.1%, with online fashion retailer Boohoo sliding 4.7% after it cut its full-year outlook, blaming a worsening macro-economic and consumer backdrop.

Burberry Group rose 2.6% after it announced that Daniel Lee would be its new chief creative officer, replacing Riccardo Tisci, who is stepping down.

(Reporting by Johann M Cherian in Bengaluru; editing by Uttaresh.V)