Crude oil prices 'next threat' during recession

22/09/2009

Crude oil prices could remain high for the next decade and be the cause of the next "global economic shock", a conference has been told.

Andrew Sentance, who sits on the Bank's Monetary Policy Committee (MPC) and is one of nine economists with the aim of keeping inflation at a sensible rate, commented that the energy markets look set to remain unpredictable.

Mr Sentance said: "We need to be looking carefully to see where the next big global shock might be coming from. Even with the high degree of spare capacity in the economy at present, oil is trading at $70 per barrel."

He added that it is unclear if the "heightened volatility will persist".

The Bank's MPC sets interest rates. Each member of the MPC has expertise in the field of economics and monetary policy. Members do not represent individual groups and act independently, the Bank of England website states.