Bank of England in Crisis as Inflation and Communication Failures Plague Forecasting Model

The Bank of England is struggling with inflation and communication issues, and their forecasting models have been in error.

Governor Andrew Bailey has admitted there are "very big lessons to learn." Raising interest rates to combat inflation is not effective, as it would just make life harder for those already struggling.

Many homeowners have fixed rate mortgages that will become more expensive if interest rates rise, which could negatively impact the economy and the government's goals.

The Prime Minister's target of reducing inflation to 5% from 10% is in danger of being missed, and borrowing costs are likely to increase.

It is a mess.