Bank of England Governor Mark Carney said he will extend his time in office by a year to 2019 to guide the economy through Britain’s split from the European Union.

Choosing a middle path between leaving in 2018 as planned or remaining until 2021 as entitled, Carney said in a letter to Chancellor of the Exchequer Philip Hammond that by staying until June 2019 he hoped to “contribute to securing an orderly transition to the U.K.’s new relationship with Europe.”

The decision ends months of speculation about Carney’s future that had raged as he led the charge to safeguard financial markets and the economy following June’s referendum.

By providing continuity at the central bank, the 51-year-old Canadian is likely to soothe market concerns over the uncertainties that still lie ahead as the U.K. negotiates its break with the EU.

Staying put is still likely to raise the ire of some Conservative lawmakers. His response to the Brexit vote and his underestimation of the economy’s resilience prompted calls for him to resign, and he had to fend off a clumsy critique of easy monetary policy from Prime Minister Theresa May.

David Fuller's view

This is good news for the UK government, given occasional rumours that Governor Carney would actually resign or should even be replaced, given his pre-referendum negative views on the impact of a possible Brexit vote.   

Carney was selected and appointed by Prime Minister David Cameron and Chancellor of the Exchequer George Osborne.  Consequently, it is very likely that he was under considerable pressure to take a similar tone on Brexit, not least as anything else would have been very newsworthy, and possibly even seen as disloyalty in some quarters. 

(See also: Carney Backed by U.K. Business Secretary Amid Resignation Talk, from Bloomberg)