News that The Bank of England had initiated an external review of its forecasting models, to ensure that it was doing everything possible to better respond to economic disruption, was welcomed by many back in June. The review followed months of uncertainty and criticism from politicians accusing the Bank of repeatedly failing to predict the rise and persistence of UK inflation. The Bank of England Governor, Andrew Bailey, admitted that it would take “a lot longer than we expected” for inflation to come down. This has left economists continuing to warn of further interest rate rises and mortgage lenders rushing to reprice loans, meaning the problems facing the UK economy are clearly not going away. Further pressure was applied when a cross-party group of MPs called for an overhaul of forecasting processes, deeming that the Bank of England’s modelling was not producing accurate results. The BANK OF ENGLAND’S Forecasting Models are Under the Microscope But What Does That Mean for the Industry? By Muzammil Shabudin, Risk Advisory Lead for SAS UK & Ireland. Banking & Financial Services 34 Finance Monthly.