MNI BRIEF: Bernanke's BOE Review Set To Back Scenario Analysis

Former U.S. Federal Reserve Chair Ben Bernanke's review into Bank of England forecasting and policy communication will be published on Friday, the BOE announced on its events calendar.

Bernanke is likely to make the case for the Bank to develop alternative economic scenarios in his review, the result of extensive consultations with BOE staffers and current and former policymakers. (See MNI INTERVIEW: Clear Case For BOE Alternative Scenarios - Bean)

But the ex-Fed head is not expected to be prescriptive, instead evaluating options and leaving the Bank scope to bring in changes over time.

While his recommendations are not likely to favour Fed-style dot plots, alternatives would include Riksbank-style in-house rate paths for central and alternative scenarios. The question of whether the Bank's central forecast should be based on an in-house rate forecast or on a market rate path remains divisive. (See MNI POLICY: Bernanke Review Looks At BOE Rate Path, Scenarios).