BOE's Inflation Forecasts Called No Worse Than Fed and ECB.
In: Bloomberg.com, 2024-02-28, S. N.PAG
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Zugriff:
According to a new analysis by Bloomberg Economics, the Bank of England's (BOE) inflation forecasts were no worse than those of the US Federal Reserve and the European Central Bank. The BOE's forecasting errors were found to be of a similar scale to other major central banks for one-quarter ahead projections. The analysis undermines criticism that the BOE was slow to respond to inflation after the pandemic. The BOE is the only top central bank to commission a formal review into its forecasts, which is expected to be published in the spring. The central banks were initially caught off guard by the energy shock following Russia's invasion of Ukraine and mistakenly assumed that the price spikes causing double-digit inflation would be temporary. The persistence of high inflation in the UK surprised rate-setters before they encountered sharper-than-expected falls in autumn 2023. The analysis also revealed that central banks were only slightly better than private sector economists at predicting inflation, despite having more resources. The review led by former Fed Chair Ben Bernanke will examine the BOE's communications and the use of market interest rate expectations in guiding forecasts. However, some BOE policymakers have expressed caution about adopting Fed-style "dot-plot" projections. [Extracted from the article]
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BOE's Inflation Forecasts Called No Worse Than Fed and ECB.
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Autor/in / Beteiligte Person: | Rees, Tom |
Zeitschrift: | Bloomberg.com, 2024-02-28, S. N.PAG |
Veröffentlichung: | 2024 |
Medientyp: | serialPeriodical |
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