Britain's biggest bank, has warned that Britain faces a stark ‘derating’ by investors in coming months. The Daily Telegraph

HSBC predicts that growth will slow and funds will begin to lose confidence in the country's economic management, triggering a mass exodus of ‘hot money’ from the City.

‘Sterling's outlook is increasingly taking a turn for the worse. A deeper downward move against a broad range of currencies is on the horizon,’ said the bank in its report, ‘Kingdom Under Siege’.

It predicts the pound will fall from around $2.04 to $1.76 against the dollar over the next 18 months.