WikiLeaks last night leaked US cables from US ambassador Louis Susman to Secretary of State Hilary Clinton which stated King had expressed “great concerns” about the Tory leaders “lack of experience” in February this year.
Blanchflower says King’s "thirst for power and influence" has "clouded his judgement one too many times" and is now calling for his resignation.
He said King had committed the "unforgivable sin of compromising the independence of the Bank of England" by commenting on party politics.
A Downing Street spokesman declined to comment about whether King had lost the confidence of the Prime Minister but did say Cameron believed the governor is doing a “good job”.
But Blanchflower said: "He has now committed the unforgivable sin of compromising the independence of the Bank of England. He is expected to be politically neutral but he has shown himself to be politically biased and as a result is now in an untenable position. King must go."
King’s alleged comments suggested that Cameron and chancellor, George Osborne, “had a tendency to think about issues only in terms of politics, and how they might affect Tory electorability [sic]”.
King is due to step down as governor at the end of his second term in 2012.
