The Bank of England has made “big improvements” in its ability to forecast the UK economy, the Bank’s chief economist has told MPs.
Andy Haldane made his comment to the Treasury Select Committee.
He acknowledged that “sizeable” economic forecasting errors had been made in the past, especially at the time of the 2008 financial crisis.
He also said more forecasting errors were likely or possible, though not on the same scale as before.
Mr Haldane was being questioned along with other Bank officials, including governor Mark Carney, about their most recent inflation forecast, which substantially upgraded the Bank’s forecast for the UK’s economic growth this year.
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