Asset purchases are regarded as a separate monetary easing policy tool and are supplementing the interest rate policy and forward guidance. In contrast, the Bank applies forward guidance to QQE as a package.
The cost of both deposit and bond funding for banks has also fallen significantly. In addition, banks’ reliance on Eurosystem funding has decreased, as reflected in the repayments to date of 60% of the circa EUR 500 billion injected in net terms into the banking system by our two very long-term refinancing operations.