Bank of England faces criticism over economic forecasting

a { color: #880000 !important; background: #ffeeee !important; } Bank of England faces criticism over economic forecastingfinance > economicsThe Bank of England faces criticism over its economic forecasting methods following a review by former Federal Reserve Chair Ben Bernanke, highlighting significant shortcomings in the Bank's forecasting infrastructure due to out-of-date software. Bank of England Governor Andrew Bailey has pledged to implement all 12 recommendations from the review to enhance forecasting accuracy.

What's happened

The Bank of England faces criticism over its economic forecasting methods following a review by former Federal Reserve Chair Ben Bernanke, highlighting significant shortcomings in the Bank's forecasting infrastructure due to out-of-date software. Bank of England Governor Andrew Bailey has pledged to implement all 12 recommendations from the review to enhance forecasting accuracy.

Why it matters

The review of the Bank of England's economic forecasting methods is crucial as it highlights the need for modernization and improvement in forecasting infrastructure. Implementing the recommendations could lead to more accurate economic predictions, positively impacting policy decisions and the overall stability of the British economy.

What the papers say

The Independent emphasizes the need for changes in the Bank of England's forecasting methods, citing significant shortcomings found in the review. In contrast, Politico focuses on the Bank's response to the review, highlighting Governor Andrew Bailey's commitment to implementing all recommendations to enhance forecasting accuracy.

How we got here

The Bank of England commissioned a review by Ben Bernanke to assess its economic forecasting methods following criticism of inaccurate predictions during periods of economic volatility. The review identified deficiencies in the Bank's forecasting infrastructure, particularly outdated software, leading to a commitment from Governor Andrew Bailey to address these issues.

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