The Governor added the Bank decided not to take a "glass half empty" view on the outcome of talks, despite warnings from Europe's chief Brexit negotiator Michel Barnier that Britain can not have a special deal for the City of London.
"There will be no transition a la carte".
Mr Barnier said talks on the transition will begin in earnest after a January 29 meeting at which the 27 remaining members are expected to approve negotiating guidelines agreed by the Commission in Brussels on Wednesday.
Sterling slid to a two-week low against the euro on Tuesday as investors focused on the scale of the task still ahead for Britain to clinch a deal on leaving the European Union, despite progress in the talks made last week.
Mr Barnier said "time is going to be of the essence" if both sides were to agree on the transition and the shape of the future relationship between Britain and the European Union before Brexit takes full effect. Many of those banks, like Goldman Sachs and Morgan Stanley have their main European operations in London at present."The crucial thing here is to reassure EU banks that they can operate as they can now", said Matt Hancock, minister for digital, later told the BBC.
As of March 30, Britain will lose its place at the European Council, where ministers represent EU nations, and its lawmakers will no longer sit in the European Parliament.
Haley's Chanukah gift in blocking nasty anti-Israel Security Council resolution
Fourteen other members of the Security Council supported the resolution - a move Erdogan described as "important and meaningful". The draft United Nations resolution calls on all countries to refrain from establishing diplomatic missions in Jerusalem .
Met Office issues weather warnings as freezing fog hits UK
Last night forecasters issued a Status Orange weather warning - valid until just after midnight. Rain chances will increase as we go through the evening and will be likely overnight.
Twitter suspends Britain First leaders' accounts
Twitter said it had decided not to categorise the US Confederate flag as hateful imagery, citing its place in history. The Twitter account of Britain First's Jayda Fransen was suspended in what has been dubbed the " Twitter purge".
Europe has set a target date for when Brexit will really hit.
In response to Barnier's warnings to the City, Carney said: "I don't accept the argument that just because it hasn't been done in the past, it can't be done in the future".
European Union leaders last week agreed to open the second stage of Brexit talks, after approving an interim deal on Britain's financial settlement, expatriate rights and the Irish border. It hopes Britain will secure a Brexit transition deal to start after Brexit in March 2019 to give regulators more time.
Part of the challenge of fleshing out the nature of their future relations is that the Europeans say they have no real idea what May's government actually wants.
But they are still unclear on what Britain wants from the future relationship, including the shape of any trade deal.
Mr Barnier warned that "logically speaking", when the United Kingdom leaves the European institutions in March 2019, it will no longer be covered by around 750 worldwide agreements - including dozens of free trade deals - negotiated by the EU while it was a member.