The economy has rebounded through the initial phase of recovery more quickly than I was expecting, and given the latest data I don’t think any additional monetary support (either negative interest rates or a further expansion of QE) is needed.
Moving forward from here, the pace of recovery will naturally slow but beyond this, the economy will need to go through a period of structural change as the more permanent impacts of the pandemic materialise. It’s clear that international travel and with it migration flows (and potentially domestic travel, given the risk of further domestic outbreaks and the response of states to these) will not return to pre-pandemic levels for some time yet, and these sectors are unlikely to return to the growth trajectory they were tracking prior to COVID. Given this I expect a full recovery from COVID, which takes the economy back to full employment, will take some time and until then a highly accommodative monetary policy stance will be appropriate.