While his review noted this was not unique to the Bank of England, Mr Bernanke said it still risked damaging its credibility.
The review warned that the Bank’s main economic model was no longer fit for purpose, adding that staff were wasting too much time on “laborious” administration tasks that limited their time for crucial economic analysis.
Welcoming the report’s dozen recommendations, Mr Bailey admitted that the Bank needed to “adapt and develop” its forecasting process for the modern age as he vowed to learn from its mistakes.
However, when asked if he was sorry, he added: “We do not do hindsight. I don’t think it is appropriate to consider whether we would have made different decisions.”
“Would we have communicated our decisions differently? I think the answer to that is yes we would.
“I am not using the word blame. It is not about blame. It is about causes. We went through some huge global shocks. They had an effect. We used monetary policy as appropriate to take into account and offset the effects of them.”
The Bank’s governor said staff were already making changes as part of a £30m investment and would announce more fundamental reforms to how it communicates its forecasts before the end of the year.
