MNI BRIEF: Bernanke Backs BOE Scenarios, Axing Fan Charts
The review by former Fed chair Ben Bernanke into the BOE's forecasting has recommended less emphasis on a central projection.
A review by former Federal Reserve head Ben Bernanke into the Bank of England forecasting and communication recommended developing alternative economic scenarios and axing its fan charts .
The review recommended that the Bank de-emphasise its central forecast and end its practice of highlighting a fan of probabilities around a most likely outturn. Instead one possibility for the BOE would be to follow other central banks in publishing its own rate path, Bernanke said. (See MNI INTERVIEW: Clear Case For BOE Alternative Scenarios - Bean)
The BOE said it accepted all his recommendations and will review progress at the end of the year.