RTTNews - Adam Posen, Deputy Director and Senior Fellow at the Peterson Institute for International Economics in Washington, has been appointed to succeed Tim Besley on the Bank of England's rate setting panel.

The appointment as an external member to the Monetary Policy Committee will take effect on September 1, 2009.

I am delighted that Adam Posen has agreed to join the Monetary Policy Committee. Dr. Posen has extensive experience analysing central banking policy issues in the UK, the US, Japan and across the EU, said Chancellor of the Exchequer Alistair Darling.

Posen, who spent seven months at the Bank of England in 2006, will likely play a major role in guiding the BoE through an expected economic recovery. The difficulty for policy makers in the UK will be be in determining when to pull back stimulus measures and raise interest rates from their lowest levels modern times.

The Bank of England left interest rates on hold for the third month in a row in June, amid growing evidence that the UK economy may be on the mend.

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