Wednesday, December 6, 2017

The Eurosystem will temporarily pause Asset purchase programmes at the holiday period ...- ECB

Press Release - Asset purchase programmes  -- Expanded asset purchase programme

Asset purchases over the holiday period

The Eurosystem will temporarily pause APP purchases (PSPP, CBPP3, CSPP and ABSPP) from 21 December to 29 December 2017 inclusive, in anticipation of significantly lower market liquidity during this period and to reduce possible market distortions. Purchases will resume on 2 January 2018. Moreover, purchases in December will be somewhat frontloaded to take advantage of the relatively better market conditions expected during the earlier part of the month.

The APP securities lending facilities of the Eurosystem will remain operational on all business days, including the period from 21 December to 29 December 2017.

To ensure consistency with the publication of the Eurosystem's weekly financial statement (including quarterly revaluation adjustments), the first publication in 2018 of the asset purchase programme holdings will be on Wednesday, 3 January 2018 at 15:45.

The expanded asset purchase programme (APP) includes all purchase programmes under which private sector securities and public sector securities are purchased to address the risks of a too prolonged period of low inflation. It consists of the

Monthly net purchases of public and private sector securities currently amount to €60 billion on average. On 26 October 2017 the ECB's Governing Council decided that net purchases would be reduced from the current monthly pace of €60 billion to a new monthly pace of €30 billion from January 2018 until the end of September 2018. 

The intention is for securities purchases to be carried out until the Governing Council sees a sustained adjustment in the path of inflation that is consistent with its aim of achieving inflation rates below, but close to, 2% over the medium term. From April 2016 until March 2017 the average monthly pace was €80 billion while from March 2015 until March 2016 the average monthly pace was €60 billion.

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