The Bank names only its second female Deputy

She will be responsible for markets and banking and will have a seat on the rate-setting committee.

Dr Shafik is deputy managing director of the International Monetary Fund and a former permanent secretary at the Department for International Development.

Known by the nickname of Minouche, she is a national of Egypt, the UK, and the US and is described on her blog as “a global citizen with a global reputation in fields ranging from emerging markets, international development, the Middle East and Africa, to the financial sector”.

Her new responsibilities will include helping to lead the design and execution of an eventual exit from the Bank’s £375bn bond-buying programme.

Dr Shafik said: “I am excited to be joining the Bank at such a critical time of institutional change, and I look forward to fulfilling this challenging new role on the Bank’s senior leadership team, as we re-shape the Bank’s balance sheet, review and strengthen the Bank’s operational roles, and, through continued international engagement, reform financial markets for the post-crisis world.”

She becomes the first woman to serve on the Monetary Policy Committee since Kate Barker left in 2010.

The Bank also confirmed the appointment of Ben Broadbent, an external member of the MPC, as Deputy Governor with responsibility for monetary policy.