The Bank of England (BoE) Governor Mark Carney said in a speech in Sheffield that a stronger pound and low global inflation could weigh on inflation in the U.K. for some time. He added that a persistent period of low global inflation is possible, driven by lower oil prices and a slowdown in global demand.

Carney pointed out that future interest rate hike might depend on events overseas. "The pace and degree of these increases will be affected by a variety of factors, including the evolution of foreign prices and our exchange rate, as well as domestic cost pressures", Carney said.

The BoE governor noted that the U.K. performs well and consumers benefit from low inflation.