Professor Alan Taylor will join the Monetary Policy Committee next month for a three-year term.

The economist is currently Professor of International and Public Affairs at Columbia University, New York.

He has served as a senior advisor to major financial institutions, such as Wall Street bank Morgan Stanley and US investment manager PIMCO.

Taylor is a visiting scholar at the Bank of England and has published papers on macroeconomics, international economics, finance and economic history.

He replaces Professor Jonathan Haskel who has sat on the nine-strong rate-setting committee since September 2018.

Chancellor Rachel Reeves confirmed his position, which he will take up on 2 September.

She says: “Professor Alan Taylor’s substantial experience in both the financial sector and academia will bring valuable expertise to the Monetary Policy Committee.”

Bank of England governor Andrew Bailey adds: “This is an important time for the Committee and we will no doubt benefit from Alan’s contributions to our debates.”

Taylor’s first Monetary Policy Committee meeting will be on 19 September and comes after the body cut rates by 0.25% to 5% earlier this month, its first reduction since March 2020.

Traders are betting that more rate cuts are on the way now inflation, at 2.2%, is close to its 2% target.

Money markets estimate that there is only a 40% chance of a back-to-back rate cut next month.

However, markets currently rank the chances of two further base rate cuts before the end of the year over 80%.