Bank of England's Carney: Low inflation is temporary, will return to 2% target within two years

Inflation stood at 0.3% in January, well below the Bank of England's 2% target, marking the lowest rate of UK Consumer Prices Index inflation since estimates of the measure began in 1988.

"What's important is that workers and businesses understand this is a temporary phenomenon," Mark Carney said quoted by BBC.

The Monetary Policy Committee would "bring it back to the target in a reasonable horizon", which he said would happen within two years.

According to Carney, three-quarters of the current weakness in inflation was due to falling prices of oil and food, which he said was a "temporary, one-off development". He also outlined there was no evidence of "deferred consumption" - in other words, people putting off purchases in the belief that prices could fall further, a potential threat to economic growth.

If there was any evidence of a sustained fall in inflation, the Bank could "if necessary" cut interest rates from their current 0.5% low to zero, but he emphasised that the "focus of policy is towards tightening".

Earlier this month, Mark Carney said that inflation in the UK could temporarily turn negative in the spring because of falling oil prices.

The Bank's base rate has been at a record low of 0.5% for nearly six years. Markets are currently expecting an interest rate rise in early 2016.

However, in written evidence to the Treasury Select Committee, Martin Weale, one of two members of the MPC to have voted to raise interest rates late last year, said it "may be appropriate to raise Bank Rate rather earlier than financial markets currently anticipate".

His warning came, as earlier MPC member Kristin Forbes said there were risks to the economy if interest rates remained at their record low rate for too long, stressing that a rate hike might be needed "in the near future".