Former Fed chair Ben Bernanke to lead Bank of England forecasting review

investmentweek.co.uk:

Former Federal Reserve chair Ben Bernanke

Supported by the bank's Independent Evaluation Office, Bernanke's review aims to «develop and strengthen» the BoE's support for the Monetary Policy Committee's approach to forecasting and monetary policy making in times of uncertainty.

The review will consider both the role of the forecast and how the procedures and analysis support the MPC's deliberations and decision making.

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Full terms of reference will be published «in due course», with the review set to begin in summer 2023 and conclude in 2024, with findings due to be published in the spring.

Chair of the Court of the BoE David Roberts said it is «crucial the bank continuously learns and adapts as an organisation».

«It is right that we take an independent and objective look at the processes which underpin the MPC's policy decisions and I am delighted that Bernanke has agreed to lead this work,» he added.

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BoE governor Andrew Bailey said: «Bernanke is a renowned and award-winning economist whose distinguished career makes him the ideal person to lead this review. The UK economy has faced a series of unprecedented and unpredictable shocks.

»The review will allow us to take a step back and reflect on where our processes need to adapt to a world in which we increasingly face significant uncertainty."

Bernanke added: «Forecasts are an important tool for central banks to assess the economic outlook. But it is right to review the design and use of forecasts and their role in policymaking, in light of major economic shocks.

»I am delighted to be leading this work for the