MNI BRIEF: BOE Staff Forecast Echoes Riksbank - Lombardelli

Bank of England Deputy Governor Clare Lombardelli has said moving away from basing its central forecast on the 'best collective judgement' of the Monetary Policy Committee to making it staff-led it was echoing the Scandinavian central banks, Norges Bank and the Riksbank and freeing up MPC members to focus on policy.

Lombardelli, in remarks made at a Fed Research Conference and released by the BOE, highlighted the Bank's commitment to delivering quantitative alternative scenarios in future, including the possibility of creating a scenarios to capture how fresh policy guidance would play out. She also cited the comments of former MPC member Silvana Tenreyro at the same conference that they should consider "different scenarios when considering guidance," to see how that guidance would hold up under differerent circumstances.

The Bank did not fully implement the change to a staff led forecast in its May round but, as BOE Governor Andrew Bailey first revealed, it is committed to doing so.