Bank of England to review inflation forecast models following Treasury concerns

Response to Huw Pill evidence

The Bank of England is set to review its forecasting models following MPs concerns about the central bank’s ability to calculate inflation.

In an open letter, Treasury Committee chair Harriett Baldwin wrote to the BoE's chair of court David Roberts, expressing concerns about the central bank's abilities to accurately predict inflation following evidence given by Huw Pill, chief economist of the Bank of England. Treasury Committee questions FCA oversight of Crispin Odey and Odey AM She quoted Pill's evidence that the central bank "recognise that our forecasts of inflation have been too low and we are trying to understand why we have made those errors, interpret those errors in terms of the behaviour and then make an assess...