French central bank's outlook sees vaccine impact in late 2021

FILE PHOTO: Bank of France Governor Francois Villeroy de Galhau arrives for the G20 meeting during the IMF and World Bank's 2019 Annual Fall Meetings of finance ministers and bank governors, in Washington, October 18, 2019. REUTERS/Mike Theiler

PARIS (Reuters) - The French central bank’s forecast of a 5% rebound in 2020 and 2021 is based on the assumption that the full effect of vaccines will not be felt until late next year, Governor Francois Villeroy de Galhau said on Monday.

“Our hypothesis is the epidemic will keep existing in the beginning of 2022 and the full effect of the vaccine ... will not be there until the end of 2021,” Villeroy told France Inter radio.

The Bank of France forecast earlier on Monday that the French economy will rebound next year as coronavirus restrictions are lifted, although not as fast as previously expected.

Reporting by Sudip Kar-Gupta and Leigh Thomas; Editing by Jacqueline Wong and Andrew Heavens