British Prime Minister Liz Truss plans to freeze energy prices for households for 18 months and allow energy companies to take out government-guaranteed loans to make up for the difference between the wholesale and retail prices, BBC reported on Tuesday.

Truss is expected to unveil her plan on Thursday.

Market reaction

This headline doesn't seem to be having a significant impact on risk sentiment with the UK's FTSE 100 Index clinging to small daily gains at 7,299 points. Meanwhile, GBP/USD was last seen rising 0.5% on the day at 1.1572.