Vaccine may allow the UK to close the gap on its peers

The UK is one of the economies that stands to benefit the most from COVID-19 vaccines. As it has suffered by more than its peers on the way down, there is more scope for its bounce to be bigger on the way up. That said, it would probably be a number of years before UK GDP returns to the levels that would have happened if COVID-19 never existed. That’s why monetary policy will remain extremely loose and gilt yields will stay very low for many years yet.