Mr Carney, an integral part of then-chancellor George Osborne’s attempts last year to frighten people off voting Brexit, said the public must understand the Bank was ready to take action to curb inflation.

It would also support the wider financial system to make sure banks and building societies “can withstand whatever shock might come with whatever type of deal we have” with the EU, he told ITV’s Good Morning Britain. 

Britain, he said, had fallen down the league of G7 nations. 

He added: “That’s part of this process of adjustment, it is a short-term issue.” 

Richard Tice, of Leave Means Leave, called on Mr Carney to focus on “the economic benefits of Brexit rather than constantly talking down Britain”. 

Meanwhile, the European Commission was accused of trying to sabotage the City of London by planning to offer the UK the same trade deal as Canada, which covers only trade in goods. 

The news raised further questions over the worth of continuing Brexit talks amid reports Theresa May is to offer the EU £40billion as a divorce bill/ transition deal. 

Mr Tice said: “It is becoming more and more evident that we must walk away from these negotiations – that will trap us in a bad deal – and move to World Trade Organisation rules.”