Exclusive: David Blanchflower urges rethink after collapse of Silicon Valley Bank and lifeline thrown to Credit Suisse

The Bank of England should slash interest rates and stop selling government bonds in the wake of the turmoil in the banking sector, a former Threadneedle Street policymaker has said.

David Blanchflower, a member of the Bank’s monetary policy committee during the global financial crisis of 2008, said official borrowing costs should be cut from 4% to 3% at this week’s meeting.