In order to contain this risk, the ECB Governing Council has staked out important safeguards in the public sector purchase programme (PSPP), which has been running since 2015. The PEPP also has such safeguards in place.
It was, however, designed to be more ﬂexible than the PSPP in order to allow monetary policy, if necessary, to exert an inﬂuence on individual markets in a more targeted manner. This ﬂexibility should not, however, be understood as a lack of bounds.