[Commercial Bank: Sterling Faces Volatility Amid Fiscal Uncertainty] Commerzbank economist Thu Lan Nguyen stated that sterling investors may face a period of volatility given the uncertainty surrounding fiscal policy. It remains unclear how the newly formed UK government under Prime Minister Burnham will handle the difficult balance between fiscal sustainability and stimulating growth. Burnham's commitment to a new economic model suggests he will not shy away from significant measures, posing considerable risk to already fragile market sentiment. As part of Burnham's commitment to lowering the cost of living, the UK government has announced plans to cap most single-journey bus fares and cut VAT on electricity bills.
