Cameron calls for Bank independence

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He also demanded that members of the key Monetary Policy Committee, which sets interest rates, should be appointed only after an open competition for places overseen by an independent committee.

The Conservative leader said that another independent committee should be set up to oversee Gordon Brown's two rules on sustainable investment and borrowing.

Mr Cameron told the British Chambers of Commerce regional business summit: "All parties now accept the need for inflation targeting, monetary discipline and sound public finance.

"In fact, people think that with Bank of England independence this issue is done and dusted. It isn't. Decisions that are crucial to the running of the British economy are still being made by politicians behind closed doors.

"The Chancellor retains the right to re-appoint the Governor of the Bank of England. I believe it's time to have a single, non-renewable fixed term for the Governor to insulate him or her from political pressure.

"And the Treasury still has the power to appoint the members of the Monetary Policy Committee without any independent input. "I think we need to move to a system of open applications for positions on the committee and that an independent body should advise on the suitability of candidates.

"The Chancellor also sits as judge and jury over his own fiscal rules. Who decides if he has broken the sustainable investment rule or the Golden Rule? He does.

"I'm convinced that we need an independent committee to determine the length of the economic cycle and give a public report, probably every six months, on whether the rules have been met.

"Taken together, these measures are the way to give real confidence that key decisions are being made in the interests of the UK economy, not the government of the day."