Brexit could slash sterling by 20%, warns Goldman Sachs

US bank predicts decision to leave would interrupt foreign capital inflow and put pressure on current account deficit

Analysts at Goldman Sachs are warning that sterling could fall by up to 20% if Britain votes to leave the European Union.

The US investment bank believes Britain will remain in the EU, but its macro markets strategy team has looked at what would happen to the pound if the vote goes the other way.

Related: UK better inside EU, says GlaxoSmithKline chief