Mark Carney will remain as Bank of England Governor until June 2019 – dispelling speculation that he was poised to resign.
In the past month conflicting newspaper reports suggested he will quit after Conservative figures including Prime Minister Theresa May criticised Carney’s policies of low interest rates and quantitative easing.
The move means Carney will stay one year longer than the five he had committed to, but two years shorter than the eight governors usually serve.
Carney said: “By taking my term in office beyond the expected period of the Article 50 process, this should help contribute to securing an orderly transition to the UK’s new relationship with Europe.
“It is an honour and a privilege to serve in this important role. I deeply appreciate your support, that of the Prime Minister, and that of colleagues at the Bank, and I look forward to continuing to promote the good of the people of the United Kingdom during this crucial time for the country.”
Chancellor Philip Hammond backed the move “through a critical period for the British economy as we negotiate our exit from the European Union”.
Stephen Smith, director of Legal & General Housing Partnerships, said: “Mark Carney’s decision to extend his term of office to 2019 represents good news for the UK economy, ensuring continuity at the Bank of England throughout the complexity of the Brexit negotiations.
“In recent months, the Bank of England’s Governor has been a strong source of stability for the financial markets, providing a robust and encouraging fiscal package in response to the vote for Brexit.”
Carney was appointed Governor in July 2013.