(1) Section 13 of the Bank of England Act 1998 (Monetary Policy Committee) is amended as follows.

(2) In subsection (2) -

(a) after paragraph (aa) insert -

“(aaa) the Deputy Governor for markets and banking,”;

(b) in paragraph (b) for “2 members” substitute “one member (to be known as the Chief Economist of the Bank)”.

(3) For subsection (3) substitute -

“(3) The member appointed under subsection (2)(b) shall be a person who carries out monetary policy analysis within the Bank.”

(4) For subsection (4) substitute -

“(4) Before appointing a person under subsection (2)(c) the Chancellor of the Exchequer must -

(a) be satisfied that the person has knowledge or experience which is likely to be relevant to the Committee’s functions, and

(b) consider whether the person has any financial or other interests that could substantially affect the functions as member that it would be proper for the person to discharge.”