Speaking to the Financial Times, Mann said that demand conditions in the UK are “quite a bit weaker” than before. That impacts consumer spending and the ability of companies to raise prices, therefore easing inflation risk. Mann was among the most hawkish policymakers at the bank but last week switched to vote for a 50 basis point rate cut.

The FTSE 100 headed lower as trading got underway on Friday, in line with a drop for heavyweights AstraZeneca PLC (LON: AZN) and GSK PLC. London’s blue-chip index slipped 18 points to 8,708 initially, having hit a record high of 8,767 on Thursday.

Growth downgrades and the rise in bond yields in recent months have wiped out the £9.9 billion margin that Reeves left in her Budget in October against her “stability rule” that day-to-day spending must be covered by taxes.