Chancellor Philip Hammond has asked Mark Carney to stay on as Bank of England governor until 31 January 2020 to ensure a smooth exit from the EU.
The extension was agreed in an exchange of letters between the governor and the chancellor published this morning.
Bank of England deputy governor with responsibility for financial stability Jon Cunliffe has also been re-appointed, effective from 1 November 2018 and his term will last until October 2023.
The re-appointment of Carney ends speculation about who would lead the bank at a time of uncertainty related to the UK’s departure from the EU.
In a letter to Hammond, Carney says: “I recognise that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit.”
He says: “Accordingly, I am willing to do whatever I can in order to promote both a successful Brexit and an effective transition at the BoE.”
Hammond says: “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 EU and provide vital stability for our economy.”