Mark Carney, the Governor of the Bank of England, will stay on in the job until January 2020 to ensure a smooth Brexit transition.
Carney took the Bank of England job in 2013 and was due to leave in June 2019.
In a statement released by the Treasury, Chancellor Phillip Hammond said: “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.
“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.”
Jon Cunliffe has also been reappointed as deputy governor.
Jonathan Sealey, chief executive of Hope Capital, said: “As Mark Carney is a known quantity for the markets it will provide stability for another seven months at a time when we most need it.
“Whilst often touted as being anti-Brexit and too political, it will at least reassure the markets that nothing fundamental will change at the Bank of England for the time being until we are out the other side of the Brexit process.”