Chancellor George Osborne has announced senior economist at Brevan Howard Asset Management Gertjan Vlieghe has been appointed to the Monetary Policy Committee.
Vlieghe will replace David Miles as external MPC member, with Miles standing down from the nine-strong committee at the end of August.
Osborne says: “Monetary policy plays a critical role in our long-term economic plan, delivering economic security to working people.
“Dr Vlieghe is an economist of outstanding ability who brings experience from his time at both the Bank of England and the financial services industry to the role and will be a strong addition to the MPC.”
Vlieghe previously worked at Deutsche Bank as a director and was the assistant to previous Bank of England governor Mervyn King. He will serve for three years from 1 September.
Last month external MPC member Martin Weale argued the case for a rate increase, saying that strong wage growth and low unemployment will push a rise, despite low oil prices holding down inflation.
Earlier in July Bank of England governor Mark Carney hinted that rate rises may be on the horizon, saying an increase could come early next year. He added that rates will increase slowly from the current 0.5 per cent to around 2.25 per cent.