British Prime Minister Liz Truss announced today, Thursday, September 8, 2022, that the government would introduce a two-year “energy price guarantee” and explained that a typical household would pay no more than £2,500 a year on energy bills.
She also stated that the government is set to make things easier for its citizens by saying, “We will deliver this by securing the wholesale energy price; we will support the country through this winter and next. We will support all businesses, charities, and public sector bodies with energy costs for 6 months.”
Liz Truss further said that energy bills would be affordable for everyone as windfall tax would not be allowed. This scheme is geared towards economic growth. In addition, it is also a measure to curb the rising inflation up to 5% points.
However, some vulnerable sectors like hospitality will no longer be getting support to make all of this work.
“Treasury announcing a joint scheme working with BOE to address extraordinary liquidity requirements faced by energy firms, worth £40 billion.”
GBP/USD staged a rebound on these comments and was last seen trading flat on the day at 1.1525.
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