There is also a risk of another rise in energy prices, Dame DeAnne warned, particularly as tensions rise in the Middle East.

It is feasible that the Bank could even need to make another increase in the Bank Rate to 5.5pc this year, she added.

Since December 2021, the Bank of England has raised its headline rate from a record low of 0.1pc to 5.25pc in a bid to bring runaway inflation back down to its target rate of 2pc.

Deutsche Bank expects the consumer prices index CPI will average 2.7pc across 2024.

Dame DeAnne said that the impact of high wage growth will continue to flow through the economy this year.

She said: “When you get the kind of high wage increases that we have seen, it affects the whole services sector, and that is a much bigger sector than the goods sector in our economy.”

Annual growth in regular earnings excluding bonuses was 7.3pc from August to October, according to the Office for National Statistics.

This was more than double the rate recorded in the same period in 2019.

Three of the Bank’s nine MPC members voted for a further increase in interest rates at the committee’s December meeting.