Mark Carney has warned that funding the current account deficit leaves Britain reliant on the ‘kindness of strangers’

A “tsunami” of cash flowing from the eurozone into Britain is set to dry up as the European Central Bank winds down its quantitative easing (QE) programme — potentially placing the pound under greater pressure.

According to Oxford Economics, about €50bn (£44bn) a year has been pouring into UK debt for the past few years as a response to the ECB’s bond-buying programme, which has pushed up asset prices across Europe, making British debt more attractive for continental investors. The consultancy’s analysis predicts that the volume of cash will halve next year.

The ECB’s huge programme of asset purchases has crowded out private investors in eurozone bond markets, causing them to look overseas to countries, including Britain, for better returns, according to the Oxford Economics