Doubts on Bank of England's forecasting

Nobody could say that Mervyn King, governor of the Bank of England, was defensive at yesterday's press conference on the latest Inflation Report (who has ever seen Mervyn on the defensive?), but he certainly knew he had some explaining to do.

COMMENT BY CENTRALBANKNET

This was not only because the Bank's forecasts for inflation and growth during the past year have been way off the mark, but because of new criticisms of the model the Bank has been using.

An article in yesterday's Financial Times by

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