New UK PM Truss readying a 130bn GBP plan to freeze energy bills

[forex4you]

New UK PM Truss readying a 130bn GBP plan to freeze energy bills

<p>Truss to provide relief on UK energy bills that have been skyrocketing higher in price.</p><ul><li>Truss will set a fixed unit price for energy suppliers to sell gas & electricity to households - energy suppliers will be obliged to charge households a reduced rate for gas & electricity</li><li>the government will guarantee financing to cover the difference</li><li>In conjunction with a green levy cut this will freeze average bills at current level</li><li> costing is approximately £130bn over 18 months </li></ul><p>Good news for those struggling. But, the but Is further rate hikes incoming....Markets will read this as another stimulus boost for the economy at a time of already strong <a href="https://www.forexlive.com/terms/i/inflation/" target="_blank" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1" class="terms__main-term">inflation</a>. As posted yesterday (and many times prior):</p><ul><li><a href="https://www.forexlive.com/news/new-uk-prime-minister-to-be-announced-at-1130-gmt-on-05-september-2022-20220905/" target="_blank">The more cash she promises (which the market will see as stimulus) the greater pressure it'll create on the Bank of England to hike harder and faster, at the margin.</a></li></ul><p>BoE has been hiking, there is plenty more to come:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.

Source: New UK PM Truss readying a 130bn GBP plan to freeze energy bills

forexlive.com