This morning sterling continues to weaken against the euro after hitting its lowest GBP/EUR rate since May 2021 yesterday, falling by 1%. There were various reasons for the pound’s fall, including slowing UK housing markets and developments in the energy crisis.
On the energy crisis matter, Liz Truss is to present her plans to tackle the squeeze on Britain’s gas supplies following obstruction from Russia. Truss is expected to announce that the UK’s energy bills will be frozen at roughly £2,500 a year for the next 2 years (until 2024) as part of her support package.
Charities and thinktanks, including the Institute for Fiscal Studies, said that the government’s plans to cap energy bills are “poorly targeted” and “fail to protect low-income families” but Truss says the government will “take action immediately” to aid “people and businesses with bills” and also “take decisive action to tackle the root cause” of the energy supply crisis.
Today and tomorrow are quiet days for UK data releases, however lots of key data will be announced at the start of next week.
