One of the main themes for 2014 has been the lack of demand in the global economy with growth outlooks continually having to be downgraded. In the euro zone, there has been a push for more credit easing, with the bloc fighting stagnant growth and inflation.
In early November, the BoE warned that U.K. price growth is likely to fall below 1 percent over the next six months amid "significant risks" to its inflation projections. It also added that price growth is then expected to rise gradually, returning to "around 2 percent" in three years' time.
Read MoreBritain's GDP growth slows in third quarter
Carney underlined this outlook on Tuesday morning to a parliamentary committee, but was questioned by lawmakers on the central bank's ability to make a dramatic turnaround if the global threat of deflation spread to the U.K. economy. He conceded that any hikes would come later than originally anticipated but believed that the bank's first move would be to raise rates and not lower them further.
He added that there was "no change in orientation" at the BoE, with Deputy Governor for Financial Stability Jon Cunliffe saying that there was no deflation scenario in its forecasts.
Many economists expect interest rates in the country to rise from historic lows in late 2015, pushing back initial forecasts made at the start of 2014. Some economists - including those from HSBC - believe the tightening could now not happen until early 2016.
Follow us on Twitter: @CNBCWorld