Central Banks
UK Economists Question BOE’s Credibility After Boost for Outlook
- Bailey admits errors but offers no apology as BOE raises rates
- Political scrutiny increases as general election approaches
The Bank of England in the City of London, UK.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The Bank of England’s forecasts for the UK economy have evolved so radically over the past six months that they have sown confusion and forced it to answer questions about its credibility.
Last November, the central bank warned that the UK would fall into recession with interest rates at just 3%. On Thursday, after raising rates to the far more punitive level of 4.5%, the recession vanished from its outlook, and fewer people were expected to lose their jobs.