Higher inflation also raises the chance of policymakers hiking interest rates next month, which in turn tends to strengthen a currency.
Carney noted that United Kingdom central bank's monetary policy is encouraging, and in future, United Kingdom economy could face various difficulties. The sterling was lower against the US dollar near midday on Tuesday after Ramsden's comments, trading at $1.1765.
Grilled by the House of Commons Treasury Select Committee, Carney stuck by the Bank of England's revised estimates that inflation would peak in October or November this year.
Inflation in Britain has hit 3% for the first since early 2012, official figures showed on Tuesday - a development that reinforces expectations that the Bank of England (BoE) will raise interest rates next month for the first time in a decade.
"As a outcome we faced a trade-off - and we still face a trade-off - between having inflation above target and the need to support, or the desirability of supporting, jobs and activity".More news: Murphy: Pulling Out Of Iran Deal Makes North Korea Agreement Harder
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The rise in September inflation gave additional evidence of a continuing effect from last year's sterling depreciation, as much of the rise came in those components of the CPI that are especially sensitive to movements in the exchange rate. But, if there are firmer signs that inflationary pressures are building, then she would be inclined to agree with the rate hiking preference of the BOE majority.
A reversal in the Bank's post-Brexit-vote, quarter percentage point cut in base rate looks nearly certain in November, particularly after news today that the consumer price index (CPI) rose at an annual rate of 3% in September.
And Tenreyro, who is an economics professor at the London School of Economics, said: "My view is that we are approaching a tipping point at which it would be necessary or justified to remove some of that stimulus".
'We believe the ability of the Bank of England to enter a rate rising cycle is severely limited by the slowing growth we are seeing in the UK. He added that fragmenting the European clearing system would "create costs for the European real economy".
Although not unexpected, the steady rise in inflation increases the pressure on consumers as the spending power of their pound wanes.