The Court of the Bank of England is
pleased to announce that Dr Ben Bernanke has agreed to lead a
review into the Bank’s forecasting and related processes during
times of significant uncertainty. Dr Bernanke will be supported
by the Bank’s Independent Evaluation Office
(IEO).
The review aims to develop and
strengthen the Bank’s support for the Monetary
Policy Committee’s (MPC’s) approach to forecasting and monetary
policymaking in times of uncertainty. The review will consider
the role of the forecast and how procedures and analysis support
the MPC’s deliberations and
decision-making.
David Roberts, Chair of Court, said:
“It is crucial that 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 Dr Bernanke has agreed to lead
this work.”
Andrew Bailey, Governor of the Bank of
England, said: “Dr 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.”
Ben Bernanke said: “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. So
I am delighted to be leading this work for the
Bank.”
The full terms of reference will be
published in due course. The review will begin this summer and
conclude next year with the findings to be published in the
spring.
Notes to
editors
-
David Roberts’ letter to the
Treasury Committee can be read here
-
More information about the IEO can
be found here
