On the one hand, having the horizon over which policy rates are expected to remain constant tied to – and longer than – the APP horizon has largely prevented the easing impact of our purchases on the yield curve from being countered by a destabilisation of short-term interest rate expectations.
On the other hand, announcing that the APP would have a certain lifespan signalled that policy rates would remain at their present levels for longer. And this has reinforced the power of the statements concerning the evolution of the policy rate path.