Nov 01, 2016 06:21 AM EDT

Mark Carney To Stay As BOE Gov Until 2019 To Help Navigate Brexit, Pound Remains High

Bank of England Governor Mark Carney to stay until 2019 to help navigate the "Brexit." The pound remains higher following the announcement.

According to a letter to Chancellor Philip Hammond, Carney said on Monday that he would stay as BOE Governor for an extra year, until June 2019. Carney will stay to help smoothen the exit of U.K. from the European Union.

"I would be honoured to extend my time of service as Governor for an additional year to the end of June 2019," he said. "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."

Bloomberg reports that Carney will be taking the middle path between leaving on 2018 or staying until 2021. Britain will start its two-year process of leaving the European Union by the end of the first quarter of 2017.

Carney's decision to stay until 2019 to help navigate the "Brexit," ends the speculation about the central banker's future. Two pro-Brexit lawmakers had criticized Carney for his negative outlook on the consequences of "Brexit" on the U.K. economy.

The pound stayed higher following Carney's announcement. The Sterling rose against all of its Group-of-10 peers, but the pound only climbed to the highest level since Oct. 27 and remains the worst performing currency in 2016.

Chris Chapman, a London-based trader at Manulife Asset Management, said that Carney is a "respected central banker." He said that Carney staying with the BOE until 2019 would be seen as a positive for the country, but again, near term, there are so many other factors weighing on the pound."

 The sterling climbed 0.4 percent to $1.2229 as of 6:17 London Time on Monday. The currency's weakest level since 1985 was on Oct. 7 when it fell to $1.1841.

Chancellor Hammond was pleased that Carney would remain as BOE Governor to help the country navigate "Brexit." He said that Carney would be able to continue his "highly effective leadership" during this process.

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