Bank of England deputy governor Charles Bean said in an interview with the Times that there is a possibility the economic recovery will be slower than first anticipated.
The industry figure explained that he does not expect inflation to be too much above target, though it should be moderately higher.
He said: "We are in an economy which is recovering from a very deep recession indeed, where there is still a substantial margin of spare capacity, where unemployment is elevated."
The crises being faced by Libya and Japan are likely to act as further risk factors, Mr Bean explained.
He noted that the UK is currently in "very hazardous" times.
Earlier in the month, FT Adviser reported that the governor of the Bank of England Mervyn King tried to warn the government and the Financial Services Authority of regulatory shortfalls prior to the 2008 crisis.
By Asim Shah