Bank of England accused of ignoring inflationary 'red flags'

Treasury Select Committee hearing

Cristian Angeloni
clock • 3 min read

Economists have criticised the Bank of England and its ability to calculate inflation, after the central bank admitted it made errors with its models.

At a Treasury Select Committee hearing today (5 July), the panel of experts recognised forecasting was incredibly difficult, and there had been warning signs inflation was going to increase quite significantly that the BoE ignored. Bank of England to review inflation forecast models following Treasury concerns Stephen King, senior economic adviser at HSBC, told the Committee the Bank had tried to argue inflation was going to be transitory, but there were second rounds effect it "has chosen not to acknowledge quite early on". He argued there had been warnings last quarter of 2020 th...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

UK retail sales fall 3.3% in November in 'bad start to festive season'

UK retail sales fall 3.3% in November in 'bad start to festive season'

Below three- and 12-month averages

Cristian Angeloni
clock 03 December 2024 • 2 min read
Eurozone inflation climbs above ECB's target to 2.3% in November

Eurozone inflation climbs above ECB's target to 2.3% in November

Analysts urge further rate cuts

Linus Uhlig
clock 29 November 2024 • 1 min read
UK public sector borrowing jumps £1.6bn as Treasury reiterates repair pledge

UK public sector borrowing jumps £1.6bn as Treasury reiterates repair pledge

October's public sector finance stats

Eve Maddock-Jones
clock 21 November 2024 • 2 min read
Trustpilot