UPDATE 1-UK finance ministry appoints its top economist as new Bank of England deputy

England deputy@

LONDON, July 27 (Reuters) - Britain's finance ministry said on Thursday it had appointed the government's chief economic adviser, Dave Ramsden, as the Bank of England's deputy governor for markets and banking.

Ramsden already acts as the government's observer on the BoE's rate-setting Monetary Policy Committee. He will leave the finance ministry and become a full MPC member on Sept. 4.

"Sir Dave's unrivalled experience at the centre of UK economic policy for more than two decades gives him the thorough grounding needed to be successful in his new role," finance minister Philip Hammond said.

Ramsden replaces Charlotte Hogg, who resigned in March over her failure to declare a potential conflict of interest about her brother's role at Barclays Bank, which had prompted a rebuke from parliament.

As a current Treasury official, Ramsden's views on monetary policy are not clear, though he is well-known to London's central bank watchers as president of a professional association, the Society of Business Economists, and as someone who explains Treasury policy to investors.

"He's been very tight-lipped when it comes to monetary policy. Even on fiscal policy ... he communicates the government's and the (Office for Budget Responsibility's) view," Nomura economist George Buckley said.

But David Owen, an economist at Jefferies, said that "rightly or wrongly ... (he) will be considered a dovish appointment".

In a 2013 interview, Ramsden stuck to the government's line at the time that the BoE had room to support the economy during cuts to public spending.

He also emphasised the role of good communications in the way central banks shape market expectations, according to the text of the interview with the Civil Service Quarterly blog.

Ramsden was the lead official on the finance ministry's analyses on the consequences of Brexit before last year's referendum. Brexit supporters criticised those for predicting that Britain's economy would tip into recession after a vote to leave the European Union - something that has not happened.

Ramsden also led the finance ministry's work on whether Britain should join the euro zone between 1999 and 2003 under former finance minister Gordon Brown, who is widely credited with dissuading then-Prime Minister Tony Blair from doing so. (Editing by Larry King)