Euro in 'freefall' as lockdown fears push the pound to strongest levels since early 2020

Frédérique Carrier, Head of Investment Strategy at RBC Wealth Management, said markets expected the Bank of England to be one of the most “proactive” central banks in raising rates, along with the Bank of Canada.

The European Central Bank meanwhile has remained more dismissive of any potential rate rise with Mr Carrier predicting it would be unlikely to act before 2023.

On Friday ECB President Christine Lagarde said: “”Conditions to raise rates are very unlikely to be satisfied next year.”

Both central banks will next review interest rates on the 16th December.