Confirmed: Carney to stay on at Bank of England until January 2020

Mark Carney had originally planned to return with his family to Canada this year

Mark Carney had originally planned to return with his family to Canada this yearDANIEL LEAL-OLIVAS REUTERS

Britain's finance minister Philip Hammond said on Tuesday time was running out to secure a Brexit deal and confirmed that Bank of England Governor Mark Carney had agreed to stay to help the country through "a turbulent period" for its economy.

Chancellor Philip Hammond has also re-appointed deputy governor Sir Jon Cunliffe, ensuring he stays at the bank until 2023.

Britain is due to leave the E.U.in March 2019 but there is uncertainty as to how exactly it will depart the trading bloc.

In a letter to Hammond, Carney says: "I recognise that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit".

"I am willing to do whatever I can in order to promote both a smooth Brexit and an effective transition at the BoE".

FILE PHOTO: The Governor of the Bank of England, Mark Carney, speaks to the Scottish Economics Forum, via a live feed, in central London, Britain March 2, 2018.

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.

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.

But Best for Britain spokesman Paul Butters said: 'It sounds like sour grapes from swivel eyed Brexiteers that a man who speaks common sense is despised. The sooner the Government provides clarity, the better.

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.

Having an inexperienced leader at Threadneedle Street at such a moment would nearly certainly be unhelpful.

'You can't avoid that medium-term impact on real incomes, ' he added.

Potential candidates to succeed Carney include Andrew Bailey, now head of the Financial Conduct Authority, or colleagues on the BOE's rate-setting committee such as Andy Haldane, Ben Broadbent or Dave Ramsden.

However, earlier this year Chancellor Philip Hammond said he might look overseas again for a successor to Carney.

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