LONDON (Reuters) -The Bank of England will make changes to explain in more detail its decisions on interest rates and other monetary policy issues from next month, BoE Chief Economist Huw Pill said on Friday.
The BoE was taking concrete steps in response to a review of how its forecasting should adapt to greater uncertainty in the world economy and its communication processes published last year by former Federal Reserve Chair Ben Bernanke, Pill said.
As a result, the Monetary Policy Committee will seek to explain the wider range of inputs used in its discussions via the increased use of explanatory boxes and a new section on risks and scenarios in its quarterly Monetary Policy Report.
In another change, the minutes of MPC meetings will give space for each of its nine member to explain their own policy views, Pill said.
“For sure, our progress thus far is not the final word,” he said in a speech to the Institute of Chartered Accountants in England and Wales. “And as circumstances change and new challenges emerge – as they inevitably will – additions will be made to an already long ‘to do’ list.”
The BoE, like other central banks, came under heavy criticism of its forecasting and communications strategy when inflation peaked above 10% in 2022 following Russia’s full-scale invasion of Ukraine which sent energy prices in Europe soaring.
The BoE’s next monetary policy announcement is due on November 6 when it is widely expected to keep rates on hold as it awaits further clarity on the persistence of inflation pressures in the economy.
(Writing by William Schomberg; editing by Suban Abdulla)
