Carney to remain at Bank of England until 2020

Mr Carney has vowed to do his bit for a 'smooth and successful' Brexit
Mr Carney has vowed to do his bit for a 'smooth and successful' Brexit

Mark Carney will stay on as Bank of England Governor until January 2020, Chancellor Philip Hammond has confirmed.

It means Mr Carney extending his term by seven months, having previously planned to step down in June 2019.

“I can now announce to the House that I have been discussing with the Governor his ability to be able to serve a little longer in post in order to ensure continuity through what could be quite a turbulent period for our economy in the early summer of 2019,” Mr Hammond said.

“I can tell the House today that the Governor has agreed, despite various personal pressures to conclude his term in June, that he will continue until the end of January 2020 in order to help support continuity in our economy during this period.”

The Canadian announced in late 2016 that he would stay in post to the end of June 2019, opting out of a full eight-year term.

It would have left him in the hot seat for just three months after Britain formally leaves the EU in March, leaving a newcomer to navigate the aftermath of the divorce.

It is thought the increasing fears of a no-deal scenario also increased the need for continuity.

Mr Carney confirmed last week he was in talks with the Treasury, pledging to do “whatever he can to support the UK through Brexit”.

In an exchange of letters with Mr Hammond published alongside the announcement, he said: “I recognise that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit.

“Accordingly, I am willing to do whatever I can in order to promote both a successful Brexit and an effective transition at the Bank of England, and I can confirm that I would be honoured to extend my term to January 2020.”