BANK of England Monetary Policy Committee (MPC) member Kate Barker will step down when her term ends on 31 May.
The Treasury said that Barker, who has served on the MPC since 2001, will not seek reappointment for a fourth term. It added that there would probably be a short period in which the spot would remain vacant.
"I would like to take this opportunity to thank Kate for the major contribution she has made since she joined the Committee," said Chancellor Alistair Darling.
"During this period, her perspective has been extremely valuable, both to the work of the Monetary Policy Committee and also to the Government through the independent reviews she has completed on housing supply and land use planning."
Meanwhile chief economist Spencer Dale will be reappointed to the MPC for another three years.
As chief economist, Dale's appointment to the MPC is within the Bank's power, while Barker is one of five external members appointed by the finance ministry.
City A.M. Reporter