Responding to Dr Ben Bernanke’s review into the Bank of England’s forecasting processes, CPS Research Fellow Dr Gerard Lyons said:
‘Andrew Bailey may have called the Bernanke review a ‘once in a generation’ review but given the fundamental problems it highlights it should not be seen as a one-off, but more usefully as a catalyst for further investigation and perhaps even a major overhaul of the Bank of England’s performance.
‘The review is a damning indictment of how the Bank is run – from under-investment in its forecasting infrastructure to major shortcomings in its communication strategies, both for markets and the general public. One major recommendation, for the central forecast to be regularly updated with alternative scenarios, is sensible not just for the Bank but for UK economic forecasting in general.
‘Criticism of the Bank of England is too often seen as an attack on its independence and integrity. Instead this review should be seen as a seemingly necessary challenge to its credibility and competence.’
ENDS
NOTES TO EDITORS
- Dr Gerard Lyons is an economist and Research Fellow at the Centre for Policy Studies.
- For further information and media requests, please contact Emma Revell, External Affairs Director, on 07931 698246 or [email protected].
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, business, welfare, education, housing and green growth, its goal is to develop policies that widen enterprise, ownership and opportunity.
Date Added: Friday 12th April 2024
