Slow path to normality, still on track for more QE

The government’s plans for a progressive opening up of non-essential stores in June suggest that the low point for the economy is behind us. But with the damage caused by the lockdown measures likely to weigh on the level of activity for some time, the road to recovery will be slow. That’s one reason why we think the Bank of England will need to loosen policy by more than the market is currently anticipating.