Bank of England set for massive U-turn on recession forecast The Bank of England will this week publish its latest quarterly Monetary Policy Report, setting out the projections used to set interest rates, and is expected to perform U-turn on forecasts about the looming recession. In November, governor Andrew Bailey warned that the country faces the longest recession on record and soaring unemployment. However Toscafund chief economist Savvas Savouri believes Mr Bailey will row back on his comments, offering a “relatively improved outlook.” The economist said the Bank’s “grossly exaggerated” expectations for UK unemployment and inflation contributed “in no small way” to the “dire” GDP forecasts in August and November’s Monetary Policy Reports. “Expect for Bailey to suggest the UK still faces recession, but one shorter and milder than the one he had outlined through last year. We expect the length of his recession forecast to be cut in half – a 'softer landing',” Mr Savouri added. Ahead of the report, Philip Shaw, chief economist at Investec, said: “One feature will probably be that the Bank will not project as long a recession as it did in November, when it pointed towards a two-year slump.” As a motorsport business owner said to me, if I ran my business like the bank of England, I'd go bust- how can they make a forecast of a two year deep recession two months ago only to now saw thay it will be a mild short lived recession?