British Prime Minister Liz Truss announced on Thursday the government will introduce a two-year "energy price guarantee" and explained that a typical household will pay no more than £2,500 a year on energy bills.

Additional takeaways

"Guarantee supersedes OFGEM price cap."

"We will deliver this by securing the wholesale price for energy."

"We will support the country through this winter and next."

"We will support all businesses, charities and public sector bodies with energy costs for 6 months."

"Vulnerable sectors including hospitality will get longer support."

"Energy bills are going to be affordable, we will not give in to calls for a windfall tax."

"Energy support scheme will boost growth."

"Energy intervention expected to curb peak inflation by up to 5 percentage points."

"Treasury announcing a joint scheme working with BOE to address extraordinary liquidity requirements faced by energy firms, worth £40 billion."

Market reaction

GBP/USD staged a rebound on these comments and was last seen trading flat on the day at 1.1525.