The UK Foreign Minister Liz Truss said in an interview with The Independent, Britain is predicted to experience a recession due to Rishi Sunak 's increase in taxes.

Key quotes

"It is cutting back on growth. It is preventing companies from investing and it's taking money out of people's pockets.”

"That is no way to get the economy going during a recession."

"I think the tax cuts I've outlined are not inflationary."

"I think the tax cuts I've outlined are not inflationary."

Truss clashed over tax policy with former finance minister Sunak on Friday in the first of three televised debates. They tussled over economic policy.

Market reaction

GBP/USD is capitalizing on the risk-on flows driven by broad US dollar weakness, witnessing an impressive turnaround at the start of the week.

At the time of writing, cable is trading at 1.1900, up 0.41% on the day.