Bank of England: Economy to rebound strongly due to vaccine
The Bank of England’s February statement suggests the UK’s rapid Covid-19 vaccination programme will help the economy bounce back strongly this year.
The economy is expected to shrink 4.2% in the first three months of 2021, amid tighter lockdown restrictions to slow the spread of the virus.
But policymakers expect a rebound this spring as consumer confidence returns.
The Bank also told High Street lenders to prepare for negative interest rates, even as it ruled out an imminent move.
The UK economy is expected to “recover rapidly” in 2021, with a successful vaccination programme supporting a “material recovery in household spending”.
Andrew Bailey, the governor of the Bank of England, described the vaccine rollout as “excellent news” that would speed up a return to normal life: “We do think that that is going to support a sustained recovery throughout the rest of the year.”
Join us on Tuesday 23rd February at 2.30pm, where Glynn Jones, Deputy Agent at the Bank of England and Richard Butler, Regional Director at the CBI, will be providing an assessment of the outlook for the Economy and UK retail, taking account of Brexit developments and their perspective on the latest government initiatives and future direction.
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