-- Ben Bernanke called on the Bank of England to consider publishing its own outlook for UK interest rates to improve the central bank’s forecasts and communication with investors and the general public.US Slams Strikes on Russia Oil Refineries as Risk to Oil Markets
BOE Governor Andrew Bailey welcomed the report and said he would pursue a “once in a generation” overhaul of the bank’s practices. He said officials are “committed to taking action” on all of Bernanke’s 12 recommendations, but it would take time and further consultation to develop detailed plans.The BOE said it will provide an update on what changes it will make by the end of the year. Clare Lombardelli, who joins the BOE in July as deputy governor for monetary policy, will lead the response.
“One thing to consider in the long run is having your own forecast for rates,” Bernanke told reporters in a briefing ahead of the review’s publication. Using current conventions can “lead to clouding the interpretation of what the committee is trying to say.” Parts of the review were damning about the BOE’s economic models, infrastructure and communications. The software and models used to produce its forecasts are “out of date” and “not adequately maintained.” He said that “makeshift fixes” have resulted in an unwieldy and inflexible system, limiting the ability of staff to conduct useful analysis.