Bank of England sees economy returning to prepandemic levels by end of year

The Bank of England predicts the economy will return to pre-pandemic levels by the end of the year.

The United Kingdom’s central bank said in its quarterly monetary report that it expects the British unemployment rate to reach 5 percent and for the nation’s economy to grow by 7.25 percent this year in, according to Thursday media reports.

“Of course, there remains uncertainty around how the pandemic might evolve and so there are risks around this projection, including from renewed waves of infections in the U.K. and other countries,” said Andrew Bailey, governor of the Bank of England, according to The New York Times.

Despite hopes for a strong economic recovery, the Bank of England said during a meeting that it won’t tighten monetary policies until inflation looks sustainable and there is “clear evidence that significant progress” has been made, according to the Times.

The predictions by the Bank of England changed after the government announced it is working to discontinue coronavirus restrictions by this summer while approving billions in funds to help businesses.

Government spending coupled with loosened restrictions are expected to help consumer spending, but it is unclear how the pandemic will permanently change lifestyles, such as working from home instead of commuting.

The U.S. also appears to be experiencing a strong economic rebound, though fears surrounding inflation have been growing.

A European Union official has said that vaccinated Americans will be allowed to travel through Europe this summer.