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Britain’s struggling currency will not regain its losses against the U.S. dollar anytime soon as steep interest rate increases from the Bank of England fail to offset an expected recession and increased government spending, a Reuters poll found.
Liz Truss, appointed prime minister on Tuesday, faces a daunting list of problems, steering Britain through a likely lengthy recession and an energy crisis that threatens the finances of millions of households and businesses.
Adding to the woes of indebted households facing soaring costs, the Bank of England is expected to lift borrowing costs by another bumper 50 basis points next month having already raised Bank Rate from 0.10 percent to 1.75 percent.
On the flip side, the dollar was expected to benefit from U.S. interest rate rises, an economy outperforming its peers and its safe-haven appeal.
