According to Jinshi Data, data on October 9 showed that due to the uncertainty of the UK's outlook, the yield gap between UK and German government bonds has widened to a 13-month high of 194 basis points.

Pooja Kumra, senior European interest rate strategist at TD Securities, believes that the pace of interest rate cuts and government spending plans in the UK could affect the economy. She said: "Policy uncertainty on both the fiscal and monetary fronts has weighed heavily on the pound."