Mark Carney to stay as Governor of Bank of England to help 'secure an orderly transition' into Brexit

But he is not taking up the option of three more years, despite a vote of confidence from Theresa May

Mr Carney said this extra 12 months in office should cover the period over which Britain leaves the European Union (Reuters)

Mark Carney will remain as Governor of the Bank of England for another year, citing that his continuation in office would help "secure an orderly transition to the UK's new relationship with Europe”.

The Bank of England has announced that Mr Carney will remain in post until June 2019, 12 months longer than originally planned.

However, Mr Carney is not taking up the option of three more years, despite a vote of confidence from Theresa May.

In a letter addressed to chancellor Philip Hammond, Mr Carney wrote that he would be “honoured” to extend his time of service as governor for an additional year because of the “importance to the country of continuity” following the Brexit vote.

Mr Carney wrote: “Recognising the importance to the country of continuity during the Article 50 negotiations, and notwithstanding those personal circumstances, I would be honoured to extend my time as Governor for an additional year to the end of June 2019.

“By taking my term in office beyond the expected period of the Article 50 process, this should help contribute to securing an orderly transition to the UK's new relationship with Europe.”

In response, Mr Hammond wrote a short reply saying he was “very pleased” that Mr Carney was to continue in office. The chancellor wrote: “I am very pleased to hear that you intend to continue as Governor of the Bank of England until the end of June 2019.

“This will enable you to continue your highly effective leadership of the Bank through a critical period for the British economy as we negotiate our exit from the European Union.”

Many are shocked that Mr Carney has decided not to stay on until 2021, despite the prime minister’s spokeswoman saying Mrs May would be “supportive” he chose to stay beyond his five years.

The spokeswoman said: “The PM has always had a good working relationship with the governor of the Bank of England and intends to continue that.”

Pressed on whether Mrs May saw the governor as “the right man for the job”, she replied: “Absolutely.”