Markets turned against the UK for the second time in less than a year as the outlook for inflation and growth darkens for an economy that has lagged behind other Group of Seven countries.
With the Bank of England struggling to contain rising rates, investors are placing bets that interest rates will rise to their highest level in 25 years. The pound has drifted further from expectations than at any time since Prime Minister Liz Truss’s poor budget rocked markets in September.