Posted 4/12/2024, 1:54:49 PM
Bank of England Launches Review to Improve Inflation Forecasting After Persistent Underestimates
- Bank of England commissioning review of its economic forecasting after underestimating inflation
- Review led by former Federal Reserve chair Ben Bernanke, focused on improving inflation forecasts
- Bernanke provided 12 recommendations to overhaul forecast presentation, re-evaluate assumptions, closely analyze errors
- Bank of England committed to implementing all recommendations, but changes will take time
- Review prompted by years of economic turbulence - pandemic, war in Ukraine, inflation spikes
