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Mark Carney will stay on as Bank of England Governor until January 2020

Bank of England Governor Mark Carney is to stay on until 2020. Credit: PA

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

The move means extending Mr Carney’s term by seven months, having previously planned to step down in June 2019.

Mr Carney confirmed last week that he was in talks with the Treasury over extending his tenure, saying he pledged to do "whatever he can to support the UK through Brexit".

Mr Hammond told the Commons on Tuesday: "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.

Chancellor of the Exchequer Philip Hammond. Credit: PA

The Canadian announced in late 2016 that he would stay in his role until the end of June 2019, opting against a full eight-year term.

It would have left him in the hot seat for just three months after Britain formally leaves the European Union 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 at the top of the Bank.

The Canadian replaced Mervyn King in 2013, becoming the first non-Briton to be appointed governor in the Bank's 300-year history. Credit: PA

In an exchange of letters with Mr Hammond published on Tuesday alongside the announcement, Mr Carney 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."