The Bank of England has “very big” lessons to learn, it said after admitting errors in its UK inflation forecasts.
The central bank’s top economist, Huw Pill, acknowledged its forecasts for inflation were “too low”, leading to mistakes in its decision-making. And governor Andrew Bailey said: “I think there are some very big lessons in how we operate monetary policy in the face of very big shocks.”
The admissions came as the Bank faced a grilling from MPs on soaring interest rates, which have spelled misery for borrowers – including millions of mortgage holders. It also came as the International Monetary Fund (IMF) said Britain is no longer heading for recession this year, upgrading its forecast.
The international body said the UK’s economic outlook remains “subdued” – but is now forecasting growth of 0.4 per cent in 2023, having previous estimated a 0.3 per cent contraction. The IMF said the change reflects “higher-than-expected resilience” in both demand and supply – pointing to improved confidence because of post-Brexit plans and declining energy costs.
This story is from the May 24, 2023 edition of The Independent.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 24, 2023 edition of The Independent.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
England's selection issues in a defining year for Stokes
England’s busiest year of Test cricket finished with a bang. Just not the type they were after.
Jesus scores hat-trick to secure Arsenal comeback
Gabriel Jesus scored a second-half hat-trick as Arsenal staged an impressive fightback to book their place in the semi-final of the Carabao Cup with a 3-2 win against Crystal Palace.
Reds survive late surge to reach Carabao Cup semis
After a full and imposing pre-season under his belt, Liverpool’s Harvey Elliott had lofty ambitions this season. Could he crack a regular starting spot? The diminutive left-footed playmaker, signed amid so much promise from Fulham five years ago, certainly would not have anticipated his first start of the season coming in mid-December. But on a torrential night on the south coast, Elliott shone brightest as the Carabao Cup holders, ultimately, sneaked through at Southampton last night.
Rashford's love affair with Man Utd nears its sad end
Forward ready for a new challenge’ after baffling slump
Inflation is up again... and it's fired by 'greedflation'
With inflation jumping to 2.6 per cent, is it time to start discussing \"greedflation\"? This was a hot topic a year ago when critics said companies were failing to pass on the falling costs they were benefitting from as inflation came down. Even the Bank of England voiced concern.
Edgar-Jones misses mark in Tennessee Williams classic
The star of 'Normal People' fails to achieve emotional lift-off in 'Cat on a Hot Tin Roof' stage return, writes Alice Saville
Fergie may be the key to a peaceful palace Christmas
When it comes to royal ructions, Prince Andrew is the gift that keeps on giving. Step forward someone not traditionally known for being the voice of calm, writes Harry Mount
It's no Holiday living in a 'perfect' Cotswolds cottage
If the classic Christmas romcom makes you fantasise about moving to a beautiful old house in the countryside, then Simon Mills, who just did that, has this warning for you
This 'cuspy Waspi' woman is furious at Labour's deceit
\"I've always been pleased that I was born at the end of the Fifties. It was a time when you could easily get a GP appointment, and when schools had new buildings. War-time rationing was over. Clothes were colourful, toys were plentiful, and I had the Sixties music of The Beatles, Dusty Springfield and The Monkees as the soundtrack of my childhood.
Musk-Farage meeting hands a political gift to Starmer
The talks between Nigel Farage and Elon Musk at Donald Trump's Mar-a-Lago estate in Florida have highlighted the urgent need to reform the UK's archaic rules on how political parties are funded. No money for Reform UK was agreed and Farage described reports of a $100m donation by Musk as \"for the birds\".
