George Osborne has announced the appointment of Michael Saunders as an external member of the Bank of England’s Monetary Policy Committee (MPC).

Saunders will be appointed for a three year term which will take effect from 9 August 2016.

He will replace Martin Weale, who comes to the end of his second term of office on 8 August 2016.

Mark Carney, governor of the Bank of England, said: “On behalf of the Bank of England, I am delighted to welcome Michael Saunders to the Monetary Policy Committee. He brings first-rate knowledge of the UK economy and a wealth of economic and financial experience.

“I would also like to take this opportunity to thank Martin Weale for the exceptional contribution he has made to the work of the Monetary Policy Committee over the past six years. Martin joined the Committee at a time of grave economic challenge for the United Kingdom, bringing invaluable practical knowledge of the UK economy coupled with academic expertise. Amongst his many contributions, Martin advanced our understanding of the labour market, assisted in the development of unconventional monetary policy and supported the Bank’s efforts to increase transparency and effective communication.”