The Bank of England Deputy Governor, Ben Broadbent was out with some remarks in the last hour and said that the economic recovery will be linked to vaccine rollout.
- Recovery will also depend on how cautious people are going forward.
- Strong growth later this year will be a function of lower starting point last year.
- In level terms, we are not more optimistic than we were three months ago.
- When the furlough scheme ends seems very likely unemployment will go up.
- A scenario of tight international borders would be negative for the supply and demand side of the economy.
- ECB had similar preparation time for negative rates.
- We are in a different place to ECB in 2014 regarding inflation.
The comments did little to influence the British pound or provide any meaningful impetus to the GBP/USD pair, which was last seen trading around the 1.3700 mark amid a modest USD pullback.