Paul Marshall, the Chairman of billion dollar hedge fund Marshall Wace, lashed out at the bank for scaremongering over Britain’s exit from the European Union.

In a scathing opinion piece for The Financial Times, he said that it was a misstep for the Bank of England to argue that the UK’s exit would be disastrous for business and the economy.

He wrote: “All of us have these types of biases and good economic forecasters are careful to be aware of their own prejudices. 

“Not so the Bank of England. It has now come to embody anti-Brexit cognitive bias to such a degree that it endangers its credibility as an institution.”

Mr Marshall, who founded Marshall Wace alongside Ian Wace, is a major Liberal Democrat donor and pro-Brexit. 

His firm, manages over $30 billion from offices in London, New York, and Hong Kong and is backed by US private equity firm KKR. His top employees can earn up to £14 million a year.

But, he scolded BoE Governor Mark Carney for intervening during the Brexit campaign to warn leaving the EU could spark a recession.

He added when BoE chief economist Andy Haldane suggested the bank had a Michael Fish moment over Brexit - he was “being unfair to weather forecasters” who got the 1987 storm wrong.

In 2016, the bank predicted exports would be down in 2017 by 0.5 percent, despite sterling being devalued.

However, they were up by 8.3 percent figure from the third quarter.

The bank also predicted that investment would be down by two percent. But figures form the Office for national Statistics showed that investment was up by 1.7 percent.

Mr Marshall told the FT that the bank’s forecasts were so "far adrift as to be embarrassing."

Adding: “The governor needs to be careful that the bank does not make more serious mistakes.

"If Mr Carney retains the biases exhibited to date, he is likely to regard departure from the EU in March 2019 as bad news for the UK economy and therefore retain a loose monetary policy bias. 

“Yet, is it not equally likely that just as the uncertainty of the past 18 months has held back inward investment, a clearer outlook for Britain’s future will unlock pent-up investment demand?”

Mr Marshall believes that the bank is being “pessimistic” on a host of issues - including inflation remaining above target “based on the supply side effects of Brexit”.

He adds, that maybe it’s time for a change of tone on the merits of Brexit, from the country's most influential bank.