Bernanke Report Finds Bank of England Forecasting Flawed, Recommends Overhaul of Outdated Systems

• The Bank of England has gotten worse at forecasting the economy in recent years, with its model being faulty and systems outdated.

• Ben Bernanke's report on the Bank's interest rate decisions is measured but still devastating, making 12 recommendations that the Bank says it will act on.

• The Bank was caught by surprise by high inflation over the past few years after initially thinking it would be short-lived.

• Bernanke states forecast errors were probably inevitable given recent unique circumstances, but accuracy has deteriorated significantly.

• Recommendations include publishing other scenarios to help the public understand decisions, and ditching problematic fan charts used for decades.