Bank of England accused of ignoring inflationary 'red flags'

Treasury Select Committee hearing

Economists have criticised the Bank of England and its ability to calculate inflation, after the central bank admitted it made errors with its models.

At a Treasury Select Committee hearing today (5 July), the panel of experts recognised forecasting was incredibly difficult, and there had been warning signs inflation was going to increase quite significantly that the BoE ignored. Bank of England to review inflation forecast models following Treasury concerns Stephen King, senior economic adviser at HSBC, told the Committee the Bank had tried to argue inflation was going to be transitory, but there were second rounds effect it "has chosen not to acknowledge quite early on". He argued there had been warnings last quarter of 2020 th...