Forecasts used by the Bank of England to set interest rates are biased and contain little useful information, according to a Financial Times audit.
It says the Monetary Policy Committee's (MPC) forecasts since 1997 have achieved no better outcome than if the Committee had simply predicted the average level for inflation and growth over the 13-year period. With concerns rising over the Bank's failure to foresee recent rises in inflation, these findings suggest the problems are, in fact, endemic. The MPC unveils its quarterly inflation report on Wednesday. Read more...
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