Bank of England launches forecasting review

It follows criticism from MPs for repeatedly failing to predict both the rise and persistence of UK inflation.  

In a letter to parliament’s Treasury Select Committee, the Bank of England’s chair of the court – which sets the organisation’s strategy and budget – David Roberts said the external review would focus on the bank’s forecasting and related processes during times of significant uncertainty.  

The review will be supported by the bank’s Independent Evaluation Office, and its findings would be “open and transparent”.  

The news came as traders increased bets on further interest rate rises, and comes off the back of the bank’s governor Andrew Bailey’s admission it would take “a lot longer than we expected” for inflation to come down from its current level.