K economy is in for another tough few months, but it believes that the impact of coronavirus restrictions will not be as bad as last year's.

Locked down on the rollout of vaccines will help the economy bounced back the size off the economy.

The GDP is expected to shrink by 4.2% in the first three months of this year.

The bank says there could be a rapid recovery from spring onwards.

Meanwhile, as the government's furlough scheme winds down, the bank says the unemployment rate is likely to peak at 7.8% by the middle of the year.

A czar, economics editor Faisal Islam, reports there are some reasons for hope, but predicting the course of the economy is as tough as trying to predict this pandemic.

Like every town city and suburb, Slough High Street is currently locked down again on the latest figures.

It had one of the highest proportions of furloughed employees in the country.

Not all of this will return, but the question is when does the process of reopening begin?

It is the Bank of England's job to assess these matters every three months, it has been counting not just jobs and prices, but vaccinations, too.

As a result, the shape of the economy from last year's extraordinary lock down and autumn recovery looks a little like this, with right now a further significant fall, but not quite as historic as last year, and then a sharp rebound between April and September, growing 5% a quarter as the economy is able to reopen.

I am optimistic that we are now seeing hugely impressive program of vaccination and that we're also now beginning to see the positive benefits off it.

On that I think, you know, as we move forwards, that should reduce uncertainty.

This famous century old industrial estate is the largest in Europe.

And while the bank also pointed to a hit for now from new trade barriers with the EU here businesses are investing Maurin serving customers over the Internet.

I think the trends around e commerce, digital and tech are so strong, Andi think the growth that we've seen over the pandemic will continue.

I think the recovery will be interesting.

What we're hearing from businesses on the trading estate, in particular and beyond, is this need for a roadmap uncertainty coming out off the pandemic.

This lock down has been quite different from the first one last April, much more of the economy has been kept open, so the overall economic hit will be smaller than last April on.

There's also the certainty now of a vaccine fueled recovery.

We on the Bank of England just don't know exactly when.

And that's led to strong calls for the government to keep its high level of support going for months to come.

On the site of Slough old Library, a surprise almost to the day of the new lock down last month, not just one, but two hotels opening here, a sign of more wheels of the economy turning during the current lock down.

There is key workers in this area on there.

There is a need for construction to continue on.

Our hotel is very well suited for that eso we decided to open and when we see we've opened this week and we've seen a pickup that justifies it, this'll is a bet on things getting back to normal at some points.

Yes, I mean, we are very hopeful that travel restrictions will be east in due course.

I mean, it's Lau.

Who wouldn't want to travel here right now?

It might not look like it, but the bank also pointed to tens off billions of pounds in extra savings by households who have not been able to spend that at some point could be unleashed, another much needed shot in the arm at a tough moment for the economy.