Five Key Ways the Bank of England Outperformed Its Peers
Live Mint-- While the Sunak government has not hesitated in claiming credit for the return of the UK inflation rate to 2% after three years of exceeding that target, the Bank of England has proven notably reserved despite the country now having fewer price pressures than France, Germany and the US. I certainly will not forget when, in the face of hedge funds stubbornly declining to close out their overleveraged positions at a loss, Governor Andrew Bailey stood firm on that famous Tuesday in reminding the funds that the Bank’s exceptional financial support would end on the Friday - and it did, with the funds backing down. Fourth, the Bank had no hesitation in commissioning an external review of its forecasting models and approach even though the prediction errors have been no worse than those of other major central banks. Finally, it is the only major central bank in the advanced world to have external appointments on its top policymaking committee, conscious of the importance of cognitive diversity and its role in combating dangerous groupthink.
History of this topic
Bank of England staff use ‘out-of-date’ software to make economic forecasts
The Independent
Ex-Fed chair Ben Bernanke finds 'significant shortcomings' in Bank of England's economic forecasting
The Independent
Bank of England has relied on ‘inadequate’ forecasts, Lords report says
The Independent
Bank of England admits it made errors in UK inflation forecasts
The Independent
Bank of England forced to intervene in markets over ‘material risk’ to UK economy
The Telegraph
Bank of England slashes growth forecast as global slump hits UK
The TelegraphDiscover Related
