UK Treasury and BOE announce temporary extension of the Ways and Means facility

Dhwani Mehta FXStreet

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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