The Bank of England should reveal how much it is prepared to damage the "overheating" UK economy to bring down inflation, according to a boss at the world’s largest asset manager.

Policymakers at the Bank of England are expected to raise interest rates from 4.25pc to 4.5pc at noon today, making it even more expensive to borrow and pushing banks to lift savings rates.

It would be the 12th consecutive rate rise but comes with inflation still more than five times the Bank of England's 2pc target at 10.1pc in April. 

Alex Brazier, deputy head of Blackrock Investment Institute, said the economy is "effectively overheating" after a "big labour supply shock".

He said the Bank’s Monetary Policy Committee must decide "what price it is willing to pay" to damage the UK economy - what he dubbed creating "growth weakness" to bring inflation down.

He told BBC Radio 4's Today programme: "The Bank faces this difficult trade off. The UK has had a reasonably big labour supply shock. 

"The economy is effectively overheating and so if the Bank wants to bring inflation down quickly, it has to generate some sort of growth weakness or continued growth weakness.

"How much growth weakness is it looking to tolerate? What price is it willing to pay to bring inflation down? That’s the thing where the market could do with a bit more guidance."

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