Sterling's slide against the dollar to a rate last seen in 1985 has sparked talk of a dramatic spiral downwards that ends in a collapse in confidence in British assets and a balance of payments crisis.
Britain's surging inflation could slow if new Prime Minister Liz Truss helps households and businesses cope with rocketing energy costs, but it is too soon to say what that will mean for interest rates, the BoE's chief economist said.
The 96-year-old monarch, who is currently on her traditional summer retreat at Balmoral in the Scottish Highlands, has been dogged by problems walking and standing since last year, forcing her to cancel a series of public engagements.
Britain's new Prime Minister Liz Truss on Wednesday readied the final details of a plan to tackle soaring energy bills, which looks likely to cool inflation but add more than 100 billion pounds ($115 billion) to the country's borrowing.
Undaunted, Truss declared from the steps of 10 Downing Street Tuesday that tax cuts would indeed form part of her package to address economic turmoil stoked by Russia's war in Ukraine and the pandemic aftermath.
In Kwasi Kwarteng, Prime Minister Liz Truss has picked an ideological ally as Britain's new finance minister, charging him with tackling a cost-of-living crisis with a tax-cutting, big-spending plan that has worried markets.
Sterling, down about 15% this year and wallowing around 2-1/2 year lows against the dollar, was expected to hover near Tuesday's $1.16 level in one and three months time.
The new British Prime Minister Liz Truss has selected a cabinet where for the first time a white man will not hold one of the country's four most important ministerial positions.
Truss, who officially became leader Tuesday at an audience with head of state Queen Elizabeth II in Scotland after the resignation of Boris Johnson, is set to meet her top team at a morning meeting.
British shoppers are cutting back on purchases of clothes and other non-essential items as they try to cover their sky-rocketing utility bills and higher food prices, surveys showed on Tuesday.
If it's not the pictures of her standing atop a tank in a nod to Conservative leader Margaret Thatcher, it's the moment when she vented her anger over cheese imports into Britain that made Liz Truss something of a household name.
Russian politicians and media lined up on Monday to heap scorn on Britain's next prime minister, Liz Truss, predicting her ascent to power would do nothing to improve dire relations.
Johnson, who was forced to quit after losing the support of dozens of his ministers, bids farewell from Downing Street before jetting to northeast Scotland to see the 96-year-old monarch.
British foreign minister Liz Truss said on Sunday she would set out immediate action in her first week in power to tackle rising energy bills and increase energy supplies if she is, as expected, appointed prime minister.
Liz Truss is expected to be named leader of the governing Conservative Party and Britain's next prime minister on Monday, poised to take power at a time when the country faces a cost of living crisis, industrial unrest and a recession.
Truss, 47, has consistently enjoyed overwhelming support over Sunak in polling of the members.
Across the entire UK -- which also includes Scotland, Wales and Northern Ireland -- it was provisionally the fourth warmest summer.
The surge in British house prices will come to an end next year as the cost of living crisis and rising borrowing costs put the brakes on what has been a buoyant market for years, a Reuters poll found.
Many currencies are struggling against the greenback, which has been galvanised by the US Federal Reserve's stated intention to continue raising its key rates.
British households' expectations for average inflation over the next five to 10 years hit a record-high 4.8% in August, more than double the Bank of England's 2% inflation target, a monthly survey from YouGov and U.S.
NHS England set aside £1.5 billion to cover an expected ₤485-million increase in energy bills. But the estimate was made in May and prices have risen again.
Truss, 47, has described her ascent towards the top of British politics as a "journey" that has seen her criticised for being ambitiously opportunistic.
