Report by former US Federal Reserve boss reveals faulty economic model and reluctance to admit mistakes
Bank forecasts undermined by out-of-date-methods, report finds
The Bank of England has got markedly worse at forecasting the economy in recent years. Its economic model is faulty. Its systems are out of date. It has been reluctant to admit past mistakes. Communication with the public could be better.
If Threadneedle Street thought it was going to get an easy ride when it called in the former head of the US central bank, Ben Bernanke, to conduct a review of how decisions on interest rates have been made in recent years, it was mistaken.
