to subsidise energy bills for households and businesses could ease the pain this winter, but may not be enough to restore growth.Britain's King Charles III during his first audience with Prime Minister Liz Truss at Buckingham Palace on September 9.
Investors have also been unsettled by indications that the government will pay for its energy program, which could cost as much as £150 billion , by sharply increasing the UK national debt.The UK generally imports more than it exports. That means a weaker pound pushes up the cost of fuel, food and other goods, making it even harder for the Bank of England to get prices under control.
The central bank, which is due to make its latest policy announcement on Thursday, has been aggressively hiking interest rates in a determined bid to bring down inflation, which stood at 9.9 per cent in August. It now faces a huge dilemma: Another big increase in borrowing costs could weigh on the economy even more.Hewson said he believes the pound will now fall toward $US1.10 after breaking the $US1.14 mark.