The Bank of England (BoE) has appointed Gertjan Vlieghe for a three-year term on its nine-strong monetary policy committee (MPC) from 1 September.
He will take over from external member David Miles, who is stepping down from the committee after its next meeting on the 6 August.
Vlieghe is a partner and economist at Brevan Howard Asset Management, a former Deutsche Bank director, and has already done a seven-year stint at the BoE during which he was economic assistant to ex-Bank of England governor Mervyn King.
"Monetary policy plays a critical role in our long term economic plan, delivering economic security to working people," chancellor George Osborne said.
"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."
"I also want to put on record my thanks to David Miles for his service to the MPC, which has benefited enormously from both his expertise and insightful contributions during his time in office."
He'll join as the Bank prepares to raise rates from a record low 0.5 per cent for the first time in more than six years. Governor Mark Carney has said it will come into "sharper relief around the turn of this year" and economists expect a minority to vote for a rate hike for the first time this year at the MPC's next meeting.
"I am delighted to welcome Gertjan Vlieghe as the new external member of the Bank of England's monetary policy committee. Jan's insight, judgement and perspective will be invaluable to the committee in the coming years, and I very much look forward to working with him," Carney said.
"I also want to express my gratitude to David Miles, who has served the MPC with dedication and distinction since joining in 2009. On behalf of the whole of the Bank I want to wish him well for the future."