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Bailey Talks Through BoE Inflation Modelling Approach

BOE
  • BoE's Bailey appearance in front of Lords committee starting now (notably includes former governor Mervyn King). First Q concerns independence - examples of success, failings. Nothing on current Monetary policy just yet.
  • Bailey talking through inflation modelling at the Bank of England - and the judgement that staffers put into forecasting - broadly inline with our policy exclusive posted Monday:
  • "The failure of the Bank of England’s standard model to predict the recent upsurge in prices has left policymakers applying a rough and hard-to-quantify upside skew to projections for inflation as they hike rates whilst Bank staff struggle to incorporate a new wave of modelling and research into their projections."

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