UK Treasury and BOE announce temporary extension of the Ways and Means facility
|The UK Treasury and Bank of England (BOE) released a joint statement on Thursday, announcing a temporary extension of the Ways and Means (W&M) facility.
Key headlines
This will provide a short-term source of additional liquidity to the government if needed to smooth its cashflows
Any use of the W&M facility will be temporary and short-term.
W&M facility supports market function by minimizing the immediate impact of raising additional funding in gilt and sterling money markets.
GBP/USD off the lows
The pound is offered a fresh lift on the above announcement, as GBP/USD extends the bounce from a daily low of 1.2362 to now trade at 1.2375, almost unchanged on the day.
Meanwhile, markets digest the latest headlines carried by the Guardian, citing that the UK Foreign Secretary Dominic Raab is preparing to extend the lockdown, as reported earlier today.
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