Interference with Bank of England would hurt UK assets: Carney

Carney told lawmakers that it was up to the government to set the BoE a target for ensuring price stability which the Bank's policymakers then decide how to meet.

"That process has stood the test of time. That process is the process that the BoE is following and if it were to be called into question, one would expect to see the emergence of a risk premium around a range of UK assets, it would be most prominent around the currency, in gilt markets, in inflation expectations," he said.

Prime Minister Theresa May earlier this month criticized the "bad side-effects" of the BoE's low interest rates and QE program, prompting push-back from Carney who said he would not be told how to do his job by politicians.

Carney said on Tuesday he did not think May was proposing a change in the way monetary policy is set.

(Reporting by David Milliken, Costas Pitas and Helen Reid; Writing by William Schomberg; Editing by Catherine Evans)