The Bank of England has appointed a new member to its hugely important Monetary Policy Committee

LONDON — The Bank of England has appointed Professor Silvana Tenreyro as the newest member of the Monetary Policy Committee.

Tenreyro, currently an economics professor at the prestigious London School of Economics, will join as an external member and replace US economist Kristin Forbes, who leaves on June 30.

The MPC is highly important because it meets eight times a year to set UK monetary policy, including cutting, holding, or raising interest rates.

Last week the Committee voted by 5 to 3 to keep interest rates at a record low of 0.25% — where it has been fixed since last summer — and cap its Quantitative Easing programme at £435 billion, despite soaring inflation.

The fact that 3 members voted to raise interest rates mean that it could be moving towards a hike — most likely back up to 0.5% — and the question of whether Tenreyro is hawkish herself will be of interest to investors.

NOW WATCH: An economist explains how demand for labour creates inflation — and what the Fed can do about it

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.