Mark Carney is set to continue as the governor of the Bank of England until the end of January 2020 to support a smooth Brexit and transition, UK Chancellor Philip Hammond confirmed Tuesday.
Hammond made the announcement while speaking at the Parliament.
The seven-month extension was agreed in an exchange of letters between the Governor and the Chancellor, the Treasury said in a statement.
Recent weeks saw intense speculation regarding Carney’s term at the helm of the UK central bank.
During a Treasury Committee hearing last week, the former Bank of Canada governor revealed that he was willing to change his earlier stance of leaving the BoE in June 2019, which was two years short of the usual eight-year term.
Carney had also confirmed that he had talks with the chancellor regarding the matter and hoped the government would make an announcement in the due course.
The UK is set to exit the European Union in March 2019.
“I recognise that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit,” Carney said in his letter to the chancellor.
“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,” he said.
In 2013, Carney succeeded Mervyn King as the BoE Governor, becoming the first non-Briton to take the top job.
“I’m delighted that the Governor has agreed to stay in his role for a further seven months to support a smooth exit from the European Union and provide vital stability for our economy,” Hammond said in a statement.
In his letter to Carney, the chancellor said an extension of his term would ensure there is continuity at the Bank during this exceptional period and would also allow for a new Governor to be appointed during the Autumn next year after the terms of the UK’s withdrawal and the framework for the future partnership have been finalized.
The government re-appointed Jon Cunliffe as the Deputy Governor of the Bank of England with responsibility for Financial Stability, effective from November 1. His term will last until October 2023.