BoE adjusting main models after forecast misses
Bailey says policy-makers decided to “aim off” main forecast after repeated errors
The Bank of England is adjusting how it projects inflation after a series of forecast errors, officials said in testimony to a parliamentary committee today (May 23).
Harriet Baldwin, chair of the Treasury Committee, criticised the BoE for a 0.8 percentage point forecast error in its February projection. Inflation has repeatedly proved more persistent than policy-makers expected.
BoE chief economist Huw Pill said “we are trying to incorporate new information” into models. A problem is the BoE
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