Former Fed Chairman Ben Bernanke Proposes New Forecasting Process for Bank of England

put the US Federal Reserve on the cutting edge of economics 12 years ago by collecting policymakers’ forecasts, including their outlook for interest rates, into groups of

Ben Bernanke’s proposals will play into the debate about how the Bank of England’s monetary policy committee makes and communicates its outlook for the UK economy.Mr Bernanke was asked last July to lead a review of the BoE’s forecasts after the central bank failed to predict inflation would hit a four-decade high of 11.1 per cent and that it would remain elevated.

The issue is especially charged now, with an election expected in the second half of the year and Prime Minister Rishi Sunak’s government trailing the Labour opposition in the polls. MPs from Mr Sunak’s Conservative Party have criticised the BoE’s performance through the pandemic and after, pressing Chancellor of the Exchequer Jeremy Hunt to tighten oversight of the institution.

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