# The Bank of England has extended the government’s overdraft – what does that mean? | MoneyWeek

> The Bank of England effectively removed the limit on the government's Ways and Means overdraft facility, which was previously about £400m. The move is a form of direct monetary financing of government spending.

- Date: 2020-04-09 · published 2020-04-09T12:00:00.000Z
- Category: policy · region UK · magnitude low
- Page: https://feedsoft.ai/events/53878-the-bank-of-england-has-extended-the-government-s-overdraft-what-does-that-mean
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Large-scale monetary financing can weaken sterling over time and raise inflation expectations, which affects import costs for UK feed buyers.

## Read by commodity

- GBPUSD: bearish ▼

## Sources

- moneyweek.com: https://moneyweek.com/economy/uk-economy/601150/the-bank-of-england-has-extended-the-governments-overdraft-what-does-that

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.