The chief monetary policymaker has been due to step down from the position shortly after Britain’s exit from the European Union (EU) in June 2019.
Chancellor Philip Hammond said Carney’s extension at the helm of the central bank would “support a smooth exit” of the UK from the EU and “ensure continuity at the bank during this exceptional period”.
Hammond said: “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.”
Carney (pictured) added: “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.”
A new governor is to be appointed during the Autumn next year after the terms of the UK’s withdrawal from the EU and the framework for the future partnership have been finalised.
At the same time, Sir John Cunliffe has been re-appointed deputy governor of the Bank with effect from November 1 2018, with his term to last until October 2023.
Hammond said: “I’m delighted to announce the re-appointment of Sir Jon Cunliffe for a further term as deputy governor, and I’m confident his extensive experience will continue to be a valuable asset to the Bank of England.”