David Blanchflower, the arch-dove on the Bank of England's rate-setting committee, is to stand down, it emerged today.

He is the second member of the nine-strong Monetary Policy Committee (MPC) to leave since the banking crisis gripped the country.

Sir John Gieve, the Deputy Governor of the Bank, will step down next March and his role as Deputy Governor responsible for financial stability will be taken by Paul Tucker on March 1.

Mr Blanchflower's decision not to serve a second three-year term on the MPC has shocked observers, who point out that he was often the only member of the MPC to vote for rate cuts as the crisis deepened this year.

Professor Blanchflower voted to cut rates nine times this year in the committee's monthly meetings before the Bank took decisive action and reduced rates by 0.5 per cent in October.

It was forced to make a further aggressive 1.5 per cent cut in November, and another swingeing 1 per cent reduction this month in a bid to try to halt the country's descent into recession.

Professor Blanchflower has voted for rate cuts 14 times in 29 MPC meetings.

Appearing in front of the Treasury Select Committee, an influential group of MPs today, Alistair Darling, the Chancellor, said that Professor Blanchflower did not want to be considered as a candidate to rejoin the MPC after his three-year term came to an end on May 31, next year.

Professor Blanchflower, who splits his time between New Hampshire and London, is an economist specialising in the jobs market. He recently forecast that unemployment in Britain would hit more than two million by Christmas.

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