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 policy making 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.