Ben Bernanke urged the Bank of England to contemplate the publication of its own projections for UK interest rates, as part of a comprehensive review anticipated to trigger a substantial overhaul in how the central bank formulates and communicates its forecasts.
The former Chair of the US Federal Reserve proposed that the BOE could unveil various scenarios depicting the optimal trajectory for achieving the 2% inflation target, particularly if market rates or the current policy stance obscure its messaging. This suggestion was one among 12 distinct recommendations put forth by Bernanke in an 86-page assessment of the BOE's economic outlook dissemination methods.
While acknowledging that the BOE's forecasts during the recent inflationary upheaval were on par with those of other central banks, the review underscored the pressing need for modernizing the infrastructure supporting these projections. It advocated for the abandonment of the fan charts, which have been centra ...
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