"I can tell the House today that the governor has agreed, despite various personal pressures to conclude his term in June, that he will continue until the end of January 2020 in order to help support continuity in our economy during this period".
To view the full article, register now.
Carney, who was due to step down in June next year, will now stay on as governor until January 2020, the Treasury said.
Hammond made the announcement while speaking at the Parliament. 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.
"How on earth can we take this government seriously when they say "Brexit means Brexit" when they keep this man unnecessarily in his post?"
Sir Jon Cunliffe, the deputy governor with responsibility for financial stability, has also been re-appointed, it added.
"Accordingly, I am willing to do whatever I can in order to promote both a successful Brexit and an effective transition at the Bank of England".
Anthony Gillham, head of investments at Quilter Investment, commented: "If Carney's tenure is extended he will have his work cut out, but the case for an experienced captain to guide the United Kingdom through unsafe waters has grown stronger as Brexit negotiations have dragged on".
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.