Bank of England to change format for economic forecast presentations
Mervyn King, the government the Bank of England, has today confirmed that future economic forecast presentations from the bank will be presented in a very different format than in the past. There have been number of complaints from economist regarding the ever more complicated economic graphs used by the Bank of England's and the fact that very often these graphs give a different impression to that given by individual monetary policy committee members.
The Bank of England has a very difficult job in presenting economic forecast because simply it is near impossible to forecast the direction of the UK economy at the moment. However, there is also no doubt that ever more complicated data can often cloud thoughts about the UK economy and put doubt in the minds of economists and analysts who issue wider recommendations to the marketplace. This confusion has presented itself in the past and led to concerns amongst investors which can have a detrimental impact upon consumer and business confidence.
It looks as though the Bank of England will present the opinions of the monetary policy committee in a very different format in the future and try to reduce the dependence upon complicated economic data and graphs showing economic performance. Stripping the information down to the bare bones will allow analysts and economists to make up their own minds regarding the UK economy and allow all parties to at least base their opinions on the same simple data.
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