"In today’s rapidly evolving economy the role of Governor is more important than ever."
Mark Carney took up the role on in July 2013 and will step down on the 31st of January 2020.
Carney initially signed up for a five-year term as governor, but agreed to extend his term to secure an "orderly" exit from Europe.
Despite the extension, his exit is still short of the standard eight years served by Bank of England governors.
The governor of the Bank of England chairs the Bank’s three main policy committees, which oversee the UK’s monetary, financial and prudential policy. The Governor also represents the Bank internationally, including at the G7, G20, Bank for International Settlements and the International Monetary Fund.
Philip Hammond said: "In today’s rapidly evolving economy the role of Governor is more important than ever. Finding a candidate with the right skills and experience to lead the Bank of England is vital for ensuring the continuing strength of our economy and for maintaining the UK’s position as a leading global financial centre.
"I look forward to working with Mark Carney over the remaining months of his term as Governor. His steady hand has helped steer the UK economy through a challenging period and we are now seeing stable, low inflation and the fastest wage growth in over a decade. And under Mark’s leadership the Bank of England has been at the forefront of reforms to make our financial system safer and more accountable."
