The Governing Council of the European Central Bank (ECB) decided today to change some of the parameters of its asset purchase programme (APP) in order to ensure its continued smooth implementation. In addition to the extension of the programme, the following parameters will be adjusted on 2 January 2017:
- The maturity range of the public sector purchase programme (PSPP) will be broadened by decreasing the minimum remaining maturity for eligible securities from two years to one year.
- Purchases of securities under the APP with a yield to maturity below the interest rate on the ECB’s deposit facility will be permitted to the extent necessary. The implementation details will be worked out by the relevant committees.