Carney to remain in his role until January 2020

The Bank of England governor tells Sky News why raising interest rates was the best move for the UK economy

Governor of the Bank of England Mark Carney will remain in post longer after Brexit to "support continuity" in the economy.

Though the extension is shorter than expected - most were predicting Carney would carry on for another year - the decision does help reduce one of the immediate uncertainties surrounding Brexit.

"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", Chancellor Philip Hammond said in a statement.

To view the full article, register now. He was set to step down in June 2019.

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".

Carney had been due to stand down in June 2019, after a six-year tenure at the top of the central bank.

Carney took over from Mervyn King as Bank of England governor in 2013, initially committing to a five-year term despite traditional protocol dictating an eight-year term as governor.

Concerns have grown over recent months that the United Kingdom and European Union are potentially headed for a "no deal" Brexit which could well induce further significant market stresses, of which Sterling would likely bear the brunt.

Labour MP Virendra Sharma, a champion of the anti-Brexit campaign group Better for Britain, said Carney's willingness to stay through the turbulence "shows the problems that the government are having on Brexit".

Hammond made the announcement while speaking at the Parliament.

Carney, who is Canadian and is reportedly interested in entering politics back home, won plaudits for helping to calm financial markets in the wake of Britain's vote in June 2016 to leave the EU.

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