By Szu Ping Chan
Business reporter, BBC News
image copyrightPA MediaThe UK’s rapid Covid-19 vaccination programme will help the economy bounce back strongly this year, according to the Bank of England.
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.
What does this mean for households?
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,” he said.
— to www.bbc.co.uk
