BoE policy maker Silvana Tenreyro said in an online discussion that upcoming recoveries diverge between advanced and emerging economies. And, “heterogeneity even within advanced economies”.
That’s partly due to “different speeds of vaccine rollout”. There are still “continued high virus prevalence in many countries, which “may lead to further lockdowns, trade and supply chain disruption”.
She also noted, “one lesson that we learned from the financial crisis is that withdrawing policy support too early can be very costly… Withdrawing it too early … can lead to scarring effects on the labour market that would be very costly and slow down growth going forward.”