'Solid recovery'
He remained vague on when a rate rise might be coming, and added: "The question in my mind is when the appropriate time for interests to increase and that is strongly consistent with the strength of the domestic economy."
Mr Carney also said that he did not see any need for negative interest rates.
Meanwhile, he said the Bank was monitoring groups of households to find out what impact any rate hike would have.
Kirstin Forbes, an external member of the Bank of England's Monetary Policy Committee, who was also giving evidence at the same hearing, said that the next interest rate move would be upwards.
"Given the state of the UK economy, a solid recovery, I still believe certainly the next move in interest rates will be up, we will not require loosening," she said.