The pound is growing on the promises of the new British Prime Minister

The British pound is rising on Tuesday after the publication of more detailed information about how Liz Truss, who became the new prime minister of Britain, intends to deal with the energy crisis in the country.

It is reported that in October, electricity and heating tariffs for households were supposed to be increased by 80%, but Truss promised that she was going to freeze tariffs for this winter. And this may cost the country's budget more than the employment support program during the pandemic.

As a result, the British pound managed to move away from the lows of 1985, which the currency approached during yesterday's trading ($ 1.1444 per 1 pound). The current quote of the GBP/USD pair is $1,1609. At the same time, analysts note that the pound continues to remain near the lows for 2.5 years amid concerns about the price that the UK will have to pay for the support of the population.

It is worth noting that the country's public debt has already grown to almost 100% of GDP from 80% before the pandemic. In general, during the pandemic, sterling declined against the US dollar by 15%, the annual inflation rate exceeded 10%, and economic growth almost stopped. 

During her election campaign, Truss hinted at lower taxes, which led to a decline in UK government bonds. In August, the drop in their prices was the deepest in several decades, because investors feared a balance of payments crisis.