BoE Deputy Governor Ben Broadbent said the strong economic growth this year will be a “function of lower starting point last year”. Recovery will be linked to vaccine rollout and how cautious people are going forward. Nevertheless, unemployment rate will very like go out when furlough scheme ends. Also, tight international borders would be negative for both the supply and demand side of the economy.
He also noted that it’s not unusual for banks to need time to prepare for negative interest rates. ECB had similar preparation time for negative rates, even though the UK is in a difference place to ECB in 2014 regarding inflation.
