Bank of England's Vlieghe: no-deal Brexit could mean near zero interest rates – business live

I have argued today that publishing an MPC forecast based on a preferred path for policy, rather than based on a market path, would be a further improvement in our communications.

Our current forecasting approach is unnecessarily complex, and at times, the growth and inflation forecasts are not consistent with the MPC’s objectives, and not consistent with the MPC’s intended actions.

Publishing an outlook for growth and inflation consistent with the MPC’s best collective view of the preferred path of interest rates would be easier for us to communicate and easier for others to understand.

Since many other central banks have, by now, preceded us in this approach, we have been able to learn from their experience that commonly perceived problems with the preferred path approach can be overcome or have not materialised elsewhere.


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