Our APP has evolved gradually, subject to its “sustained adjustment” conditionality, i.e. the Governing Council’s intention to continue its net asset purchases until it sees a sustained adjustment in the path of inflation consistent with its inflation aim. The purchase universe was first expanded beyond asset-backed securities and covered bonds to include public and corporate sector securities.
Over time, we also extended the purchase horizon and adjusted the monthly purchase volumes to fine-tune the programme in line with our assessment of progress towards a sustained adjustment in the path of inflation consistent with our inflation aim. Market expectations have internalised the conditionality framework that governs the size and duration of the APP quite well.