Bank of England's model comes in for criticism

Research has cast doubt on the accuracy of forecasting models used by the Bank of England. It suggests the models forecast for inflation two years ahead was on average 0.5 percentage points too high.

The models used by the Bank of England to produce economic forecasts have not been "state of the art", according to a report from a leading economist, commissioned by the Bank's supervisory court.

The review of the Bank's forecasting techniques by Adrian Pagan of the Australian National University