Business & Data
Bank of Canada weighs oil price forecasting methods
The central bank says the best approach depends on the forecast horizon and whether an explanation is needed alongside the number.
Oil price forecasts help central banks assess risks to inflation and economic activity, the Bank of Canada said in a release published Oct. 15. Forecasters often rely on the latest price of oil, on futures markets or on economic models, the bank said.1
The best approach depends on how far ahead forecasters are looking and whether they need only a forecast or also an explanation of what is behind it, according to the bank.1
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Sources
- Forecasting oil prices: What works best and when · Bank of Canada
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