The Bank of England downgraded the UK's growth forecast to 1.4% in 2011 on Wednesday morning, and warned Britons of a "sluggish" economy.
Mervyn King told journalists that inflation could hit 5% this year but would most likely fall in 2011.
He said the biggest risks to the UK economy came from abroad: "There is a limit to what UK monetary policy can do... monetary policy cannot influence inflation over the next few months."
King warned the outlook for the global economy had "deteriorated" in the wake of stock market turmoil in August.