The Eurosystem extended its purchases to bonds issued by euro area governments, government agencies and European institutions. [Slide 8: II – Key features of EAPP] Let us now discuss the current, expanded asset purchase programme, in more detail.
[Slide 9: The Eurosystem sets the liquidity of the euro area banking system] The Eurosystem is able to regulate the euro area banking system’s liquidity with two tools. Firstly, the Eurosystem organises regular refinancing operations: tenders. The interest rate applied to these operations is the main policy rate, which currently stands at 0.05%. With these refinancing operations the Eurosystem steers short-term money market rates.