Bank of England Governor Mark Carney, who is expected to step back in March 2019, has confirmed he had been talking to the Chancellor of the Exchequer about his future.

He said he was happy to do whatever he could “to promote a smooth Brexit and an effective transition at the Bank” but said the announcement was not his to make.

The Rt Hon. Nicky Morgan MP, chair of the Treasury Committee, said: “Stability is vital during this important period. The sooner the Government provides clarity, the better. Any extension to Dr Carney’s term should not be used to delay succession planning.”

Meanwhile, a Committee member asked Member of the Monetary Policy Committee (MPC) Silvana Tenreyo if the MPC sits ready to change its interest rate prediction of ‘limited and gradual’ against the implications of ongoing Brexit negotiations.

Refusing to be drawn Tenreyo said any decisions would be framed by the MPC’s remit of targeting 2% inflation and supporting employment and growth.

Andy Haldane, chief economist and executive director monetary analysis and statistics said market surveys revealed one in four now expected a ‘no-deal’ Brexit, up from one in five three or four months ago.

“On the implications for monetary policy of Brexit, it’s a bit dull when economists say it depends, but it does depend,” he added.