Bank of England interest rate policymaker Swati Dhingra said that the bank's economic model had “persistent and systemic” prediction errors, but it was no worse than other central banks.
Dhingra delivered the above speech at a conference hosted by King's College London on Friday. Earlier, former Federal Reserve Chairman Bernanke commented on the Bank of England's mispredictions.
“At the end of the day, even these statistical models systematically overestimate or underestimate... when the turning point is reached, they do the complete opposite”.
“Even the best predictive models always have some degree of inherent uncertainty and inaccuracy.”
A slide posted at the same time as the speech indicated that the Bank of England had “persistent and systemic” errors in its predictions.