The chancellor, Alistair Darling, announced the appointment today with Miles taking up the position from June 1 2009.
Professor Miles has been chief economist at Morgan Stanley since September 2004 and is also a visiting professor at Imperial College.
He is well-known for his review of the mortgage market “The UK Mortgage Market: Taking the Longer-Term View’ which was published alongside the Budget in 2004.
Alistair Darling, chancellor of the exchequer, says: “I am delighted that David Miles has agreed to join the MPC.
“His considerable experience analysing the interaction between financial markets and the economy will be extremely valuable to the committee.”
In a separate development, Tim Besley has decided not to seek reappointment to the MPC when his term expires on August 31.
He has chosen instead to focus on his academic career.