Chancellor Philip Hammond has announced to MPs that Mark Carney will remain Bank of England (BoE) governor until the end of January 2020.

The chancellor has stated that the seven-month extension would “support a smooth exit” from the European Union, and it was agreed between an exchange of letters between the governor and Hammond that was published on Wednesday.

Carney has previously announced that he was “willing to do whatever I can in order to promote both a successful Brexit and an effective transition at the Bank of England”.

The announcement marks the second extension of Carney’s tenure as governor, as he originally agreed a five-year term with the option of a further three after taking over from Mervyn King in 2013.

However, the extension will allow the government more time to recruit Carney’s successor amid concern that few candidates would want to take on the responsibility during an unpredictable stage in the Brexit process.

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