‘The fall in oil prices has been good for the economy’ says the bank of England’s deputy governor Ben Broadbent.
Since mid- 2014 oil prices have fallen by 75%, this is due to an oversupply and sluggish demand.
On Thursday Brent Crude oil dropped by another 1.6% to $34.46 per barrel
Mr Broadbent stated over the last few years real wages (that adjust for inflation) have risen 7%, this is the fastest growth rate in 15 years.
"A lot of that has to do in the drop in oil prices. That's boosted consumption and UK growth overall," he said.
"It was only in the latter part of 2012, once confidence about the Eurozone had begun to come back, that the UK economy really got going. So, I would date the recovery not from 2008 or 2009, but actually from early 2013."
"And since then we've enjoyed three years of pretty solid growth certainly in the labour market," Mr Broadbent said.