The decline in interest rates across the yield curve has lowered the exchange rate, relative to what it otherwise would be. This package of monetary stimulus is complementing the significant fiscal stimulus. It has boosted the cash flow of households and businesses, as the effect of lower borrowing rates has more than offset the impact of lower deposit rates.
This directly supports spending in the economy, as does the lower exchange rate. The lower borrowing rates will encourage businesses and households to borrow, invest and spend when they are confident about their future prospects. While the news about vaccines should help bolster that confidence, the recovery will be uneven.