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Mark Carney said the deal "takes away the tail risk of a disorderly Brexit".
However the governor warned that the deal might not boost the economy to the same extent as the deal put forward by Boris Johnson's predecessor, Theresa May.
Mr Carney said that the "different" future relationship negotiated this week meant it "remains to be seen" if overall the deal would be as positive for the economy as the deal put forward by Mr Johnson's predecessor, Theresa May.
When pressed about the impact of extra customs checks likely from the more distant relationship with the EU envisaged by the new deal, Mr Carney said its economic outcome would not "overlap" the closest version of the previous Theresa May deal, "and that last bit is diplomacy".
"The new economic partnership remains to be negotiated so there's still a wide range of potential relationships that can be struck on the basis of this deal, but short term, it takes away these risks," said Mr Carney.
"Last night in the G20 room it was universally welcomed that this progress had been made because, if I put this into context - the world's global economic outlook - the world is in a precarious position - I'm quoting the IMF - and directionally we'd agree with that characterisation. [...]