Asset Purchase Programmes
The ECB’s asset purchase programme (APP) was initiated in mid-2014 to support the monetary policy transmission mechanism and provide the amount of policy accommodation needed to ensure price stability. APP consists of four purchase programmes, namely the:
- Third Covered Bond Purchase Programme (CBPP3)
- Asset-Backed Securities Purchase Programme (ABSPP)
- Public Sector Purchase Programme (PSPP)
- Corporate Sector Purchase Programme (CSPP)
The Central Bank of Ireland purchased securities under PSPP and CBPP3. Under PSPP, primarily Irish government bonds were purchased, together with a limited amount of bonds issued by international organisations and multilateral development banks on behalf of the Eurosystem.
Net asset purchases in APP were discontinued from July 2022, while reinvestments under the APP were discontinued as of July 2023. As such, the APP portfolio is expected to decline at a measured and predictable pace.
More information on the purchase programmes can be found on the ECB’s website.
Pandemic Emergency Purchase Programme (PEPP)
The ECB’s pandemic emergency purchase programme (PEPP) is a non-standard monetary policy measure initiated in March 2020 to counter the serious risks to the monetary policy transmission mechanism and the outlook for the euro area posed by the coronavirus (COVID-19) outbreak.
Net asset purchases in PEPP were discontinued from March 2022, while the ECB’s Governing Council has also announced that it intends to discontinue reinvestments under the PEPP at the end of 2024.
More information on PEPP can be found on the ECB’s website