1/This Bank of England arrangement with HM Treasury may not be a big deal. The normal arrangement in most countries is for the central bank to keep the government at arm& #39;s length. For example, in the US, the Fed purchases Treasuries from primary dealers... https://www.bankofengland.co.uk/news/2020/april/hmt-and-boe-announce-temporary-extension-to-ways-and-means-facility">https://www.bankofengland.co.uk/news/2020...

2/not directly from the government. And, of course, those purchases are made at the Fed& #39;s discretion. In this instance, HM Treasury has the temporary right to borrow, at its discretion, from the BoE, apparently with no fixed maturity for the debt. Note, however, that the US...

3/Treasury currently has a substantial balance in its "general account" with the Fed, and that balance exhibits high volatility, which is out of the Fed& #39;s control. That& #39;s account balance is a debt of the Fed to the Treasury, but the issues are the same as in the UK case. In...

4/both cases the central bank can offset the fiscal authority& #39;s actions through open market operations.