Bank predicts spring bounceback

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Recovery in sight?

The Bank of England has predicted that after a tough winter, the economy will rebound in spring as the vaccine roll out starts to work its magic. It predicts the economy will shrink by 4.2% in the first 3 months of 2021. The Bank also told high street banks to prepare for negative interest rates. It ruled out cutting interest rates in the short term, but wants to keep it up its sleeve for the future.

Quarantine hotels book up

The government is booking rooms in hotel airports across the country ready to start using them for quarantine on the 15th February. Arrivals from 33 high-risk countries including South Africa and Brazil. They are expecting over 1,000 people a day to arrive and need a hotel room to stay in for the 10-day self isolation.

Energy bills to increase

Energy prices will return to pre-pandemic levels from April, when the price cap will be lifted. The energy regulator Ofgem has confirmed that bills will rise by £96 per year for 11 million customers on default tariffs. People who have a prepayment metre will see an £87 increase.