Mark Carney will stay on as the Bank of England Governor until the end of January 2020 to help smooth Britain's departure from the European Union next year, Chancellor Philip Hammond told the parliament today.
Chancellor Philip Hammond confirmed that Carney's term has been extended until 31 January 2020, a further seven months on his original deal.
The chancellor also asked deputy governor Jon Cunliffe to extend his tenure by another 4-years, which Cunliffe accepted, saying, "I look forward to continuing to work with Mark and all Bank colleagues to deliver our important mission over the coming years".
It would have left him in the hot seat for just three months after Britain formally leaves the European Union in March, leaving a newcomer to navigate the aftermath of the divorce.
"I fully recognise that during this critical period, it's important that everyone does everything they can to help with the transition of exiting the EU", Carney said.
Hammond also said that Carney would provide "vital stability" for Britain's economy during the Brexit transition.
He had originally only meant to remain for five years after joining in 2013, but announced plans to stay an extra year four months after the Brexit Referendum in June 2016.
Moments after signalling he would stay during a Treasury committee last week, the Governor risked angering Brexiteers further with a new warning a no deal Brexit will squeeze household budgets.
Carney became in July 2013 the first non-Briton to take the top job at the Bank of England for an initial five-year term.
'They used to throw brick bats at Mark Carney about Project Fear but now it's Project Near'.
Having an inexperienced leader at Threadneedle Street at such a moment would nearly certainly be unhelpful.
He was seen as a key source of stability in the political power vacuum that followed the Brexit vote, with one former policy maker calling him the "only adult in the room" for his pledge to support the financial system in the immediate aftermath.
Mr Hammond said an extension...