Mark Carney said on Friday that he would not “take instruction” from politicians after Theresa May warned that there had been “bad side effects” due to Bank of England policies.

In comments which risk an unprecedented clash between the Governor of the Bank of England and the Prime Minister, Mr Carney said that “it can be difficult sometimes if there are political comments on our policies”.

His remarks come just days after Mrs May used her speech to the Conservative conference to criticise the Bank over quantitative easing and ultra-low interest rates.