Ben Bernanke's Review Urges Major Reforms in Bank of England's Forecasting Methods

The review highlights outdated software and inadequate resources as key issues affecting economic predictions.

• Ben Bernanke's review of the Bank of England's forecasting methods found significant shortcomings, particularly in software and resource allocation.
• The review recommends updating forecasting software, improving resources, and considering new approaches to interest rate predictions.
• Criticism has been directed at the Bank for inaccurate economic forecasts during periods of volatility, such as the COVID-19 pandemic and geopolitical tensions.
• The Bank of England is advised to potentially produce its own interest rate forecasts to enhance the accuracy of its economic predictions.
• Governor Andrew Bailey sees the review as a critical opportunity to overhaul the Bank's forecasting capabilities for a more uncertain global economy.

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