Treasury errors make it difficult for the BoE

Well, after all Gordon Brown’s ranting about how successful a Chancellor he has been and how well he has run the Treasury, it turns out the Treasury has been making it very difficult for the Bank of England.

The BoE is responsible for setting interest rates which help to keep inflation under control. It’s my belief that it is the good job the BoE has done, that has lead to much of the success and stability of the economy over the past 9 years.

But a report out today says the Treasury’s over rated forecasts for economic growth have not helped the BoE do its job. The Treasury’s response to this, "fiscal and economic forecasting is complex". I’m sure it took the most intelligent people in the Treasury to come up with that!

As the BoE has done such a good job with interest rates, prehaps forecasting should be devolved to them as well.