[3] The market stabilisation role of the PEPP was facilitated by its design, which allowed flexibility in the composition of purchases over time, across asset classes and among jurisdictions. [4] The significant drop in yields upon the announcement of the PEPP vividly illustrated the importance of central banks in underpinning market stability in the event of a large adverse shock.
The additional asset purchases under the PEPP also serve to ease the monetary policy stance.