Sterling is suffering from the country’s economic prospects, as traders see the Bank of England being helpless to halt the seemingly endless rise in inflation. It feels like almost every day there is a further prediction of a quite incredible rise in inflation, with the latest being 25% early next year.

With activity, particularly in the manufacturing and industrial sectors, slowing alarmingly, the new Prime Minister will take over at what could be a historically critical time.

Liz Truss or Rishi Sunak will be expected to announce new policies to ease the cost-of-living crisis, with figures published yesterday showing that the latest increase in the cost of living will push a further three million families into poverty.

Parliament returns from its summer break next Monday, the day on which the result of the Conservative Party leadership contest will also be announced. Without having confirmed whether she will agree to further direct help for consumers,

It is rumoured that Truss wants to pass targeted payments to those most in need, while Sunak believes that help should be available to all to get on top of the issue at once before winter arrives.