If favourable financing conditions can be maintained with a flow of asset purchases that does not exhaust the envelope by the envisaged end of the PEPP’s net purchase phase, the envelope need not be used in full. Equally, the envelope can be recalibrated if required to maintain favourable financing conditions.
In December we also extended the horizon for net purchases under the PEPP to at least the end of March 2022 and the period of reinvestment of the principal payments from maturing securities purchased under the PEPP until at least the end of 2023.