Bank of England’s forecasting models ‘not fit for purpose’, scathing review finds

Former Federal Reserve chairman Ben Bernanke published his long awaited review of the Bank’s forecasting

Ben Bernanke review came in the wake of criticism of the Bank of England for failing to forecast high inflation. Picture: Getty

The Bank of England's forecasting models are not fit for purpose and need to be urgently overhauled, a major review has said.

The report, billed as a "once in a generation" opportunity to reform the Bank's approach to forecasting, strongly criticised key software tools as "out of date" and warned its central economic model had "significant shortcomings".

The long-awaited findings by Ben Bernanke, former Federal Reserve chairman, have been highly anticipated among London economists and ...