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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.

Key Quotes:

  • 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.