"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".
Mr Hammond said he was "delighted" that Mr Carney would serve seven more months "to support a smooth exit from the European Union and provide vital stability for our economy".
Mark Carney is sticking around for Brexit.
Carney was previously set to leave his role in June 2019 but has been persuaded to stay on by Chancellor Philip Hammond.
He will now remain in post until January 2020.
The Chancellor had cited a desire to keep carney at the helm so as to help ensure a smooth Brexit from the European Union. "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".
Nigel Farage wasn't happy with the announcement that the Governor of the Bank of England is staying on until 2020.
Ending days of mounting speculation, Hammond confirmed to lawmakers on Tuesday that the Canadian, who had been due to step down in June 2019, will extend his term to help steer the United Kingdom economy in the wake of Brexit. Following Britain's Brexit vote, he agreed to remain in place an additional year to the end of June.
Last November the BoE raised rates for the first time in more than a decade and increased them again last month, when Carney said that market expectations of a further rate rise a year for the next few years would be a reasonable rule of thumb.
"As BoE governor, Carney has not always been universally popular, but appointing him as temporary caretaker through this period of transition does make sense".