The effectiveness of monetary policy in a low rate environment When the pandemic broke out in late February, we honoured this commitment by reacting forcefully to the rapidly emerging downside risks to price stability. The pandemic emergency purchase programme, or PEPP, has been at the heart of our policy response.
[4] By stabilising market conditions at a time of exceptional uncertainty and demand for safety, the PEPP  https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp201124~bcaebee7c0.en.html  3/13  24/11/2020  COVID-19 and monetary policy: Reinforcing prevailing challenges  acted as an important circuit breaker that stopped the pandemic from turning into a full-blown financial crisis (see slide 4).