Goldman Sachs’ managing director Ben Broadbent will replace Andrew Sentence as an external member of the Monetary Policy Committee at the beginning of June.
Broadbent became managing director at Goldman Sachs in 2006, prior to which he was senior European economist. In the past he has also worked at the Treasury and the Bank of England and was formerly an assistant professor at Columbia University.
Chancellor George Osborne said: “His broad professional experience in the financial sector and academia, as well as a detailed knowledge of the UK economy, will be extremely valuable to the committee.”
Broadbent joins the committee as it is split over whether to raise interest rates, increase quantitative easing or continue with the wait and see approach it has been following since it lowered interest rates to a record low of 0.5 per cent in 2009.
Sentence is one of three members calling for a rate rise while fellow external member Adam Posen has been calling for more QE and the remainder opting to maintain current policy.
Sentance joined the MPC in 2006 and will finish his second term on the committee at the end of May. Broadbent will take up his position on June 1. A total of 27 people applied for the position.
There was only one female applicant out of 27 and the Government says it wants more women to apply for positions on the committee in future.