UK benchmark borrowing costs plunged to new record lows today as Brexit-fuelled volatility rattled investors and spurred a flight to safety a day after the Bank of England signalled the need to pump more money into the economy.

The yield on 10-year gilts – UK government bonds maturing in 10 years time – hit a new low of 0.78pc, bringing the decline to almost 60 basis points from last week’s pre-Brexit level of 1.373pc.

Yields on five-year gilts fell to a fresh low of 0.313pc and two-year yields, which are particularly sensitive to interest rate expectations, touched levels last seen in September 2012. The slide came as Bank of England Governor Mark Carney said the economic outlook had “deteriorated” and some monetary policy will “likely be required” in the summer months following Britain’s vote to leave the EU.

It also reflected increased concerns about global growth and expectations the UK could fall into recession as it grapples with political and economic uncertainty in the wake of the Brexit vote.