Hedgie tycoon Crispin Odey has sounded the alarm over the UK economy, warning it is “destined for recession” due to a drop in the pound.

The investment chief, a prominent Brexit campaigner and a winner from sterling’s fall, said a volatile cocktail of weak sterling and more central bank money printing would lead to ballooning inflation, hurting consumers and businesses.

“Sterling is getting more expensive the further it falls. [Bank Governor Mark] Carney is really under pressure and should be raising interest rates, but it now looks as though a rise in interest rates will be over his metaphorical dead body. We are now destined to have a recession in the UK as well as inflation,” he told his clients.

The fall in the pound, by 18% against its peers since the vote, has widened the gulf between inflation and central bank interest rates, at 0.5%. Inflation, which normally rises when the pound is weak, hit a two-year high in September of 1% but Odey thinks it will pass 3.5%.

“You have this strange paradox where the further sterling falls, the less attractive it is to investors because inflation is growing,” Odey told the Standard.