Liz Truss, on course to become Britain's prime minister on Monday, looks set to walk straight into a financial market firestorm that she will have to act fast to extinguish.
The pound had its worst month against the dollar in August since shortly after the Brexit referendum in 2016 and fell against the euro too. Some British government bonds suffered their biggest price losses in decades. Much of the market turmoil is due to a surging inflation rate which is the highest among Group of Seven economies. Goldman Sachs says it could hit 22% if the impact of Russia's invasion of Ukraine on gas prices does not fade.
