McCafferty will bring his CBI experience to new Bank post

The business lobby group welcomed his appointment, saying McCafferty’s experience in the private arena would be vital for the nine-strong committee, which votes monthly on monetary policy at the central bank.

CBI director-general John Cridland said: “At a time when the private sector is so vital to the future of the British economy, it is good news that Ian’s excellent understanding of the economy will be available to the Bank.

“I am also very pleased for Ian personally. After 11 years’ sterling service at the CBI, this recognition for one of the country’s leading economists is much deserved.”

McCafferty is due to succeed Posen at the start of September.

On Thursday, the MPC voted in favour of extending the programme of quantitative easing by £50 billion to £375bn, while pegging interest rates at their record low of 0.5 per cent. Posen has recently supported an increase in QE to try to stimulate the UK economy.

Yesterday’s announcement came from the Treasury, with the Chancellor George Osborne saying: “I am delighted that Ian has agreed to join the monetary policy committee.

“His broad professional experience in business and industry, as well as his knowledge of the UK economy, will be extremely valuable to the committee in dealing with the challenges it faces now and in the future.”

In May, it emerged that Posen would not be seeking another three-year term on the MPC. He is to take up the position of director at the Peterson Institute, an economic think-tank.

The Treasury said yesterday that it wanted to see a greater number of women apply for MPC positions and will “continue to encourage them to do so”. It noted that seven of the 29 applications it received for the latest vacancy were from women.

The interviews were carried out by two Treasury officials – Dave Ramsden and Tom Scholar – and former MPC member Kate Barker, who then made recommendations to the Chancellor.