Mark Carney, the first foreigner to head the bank in its 319-year history, praised Austen as "one of the greatest writers in English literature" and said the choice of future banknote characters would be reviewed to ensure a row of this sort did not erupt again.

"We believe that our notes should celebrate the full diversity of great British historical figures and their contributions in a wide range of fields," he told a gathering at the Jane Austen House Museum in Chawton, the 17th century house where the author wrote some of her best-known novels.

"We want people to have confidence in our commitment to diversity. That is why I am today announcing a review of the selection process for future banknote characters."

The Austen notes are likely to come into circulation in 2017 and will feature a portrait adapted from an original sketch by Jane's sister together with the quote 'I declare after all there is no enjoyment like reading!' from Pride and Prejudice.

Carney, who headed the Bank of Canada before taking the helm of Britain's central bank on July 1, is keen to assert his reformist credentials in an antiquated institution where doormen still dress in top hats and pink tail-coats.

Whether Carney, who has four daughters, will succeed in redressing the gender imbalance on the bank's monetary policy committee remains to be seen. The nine-strong body has been male-only since May 2010, and only four women have served on the committee since its creation in 1997.

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