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

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 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.

"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 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.

However, 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".

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."