Economics

Explainer: What to expect from the Bank of England’s major forecasting review

Ben Bernanke’s review of the bank’s forecasting approach will be published on Friday following sustained criticism of the regulator’s officials

Andrew Bailey, the Bank of England’s governor, last year commissioned a major review of forecasting. Picture: Getty

The Bank of England will tomorrow publish a highly anticipated review of its economic forecasting. Carried out by Ben Bernanke, the former Federal Reserve chair, it comes in the wake of sustained criticism of officials for failing to predict and then rapidly reduce high inflation.

But what is the significance of the report and what will it recommend?

The background

Forecasting and macroeconomic projections are one of the key functions of a central bank, a ...