Moreover, the Outright Monetary Transactions (OMTs) were introduced in September 2012 in order to potentially purchase an unlimited amount of sovereign bonds with a remaining maturity of one to three years with a conditionality attached on the basis of a full or precautionary macroeconomic adjustment program.4 Since the liquidity injected into the markets will be fully sterilized, this measure is not regarded as a quantitative easing policy.
Since 2013, some European banks have started to make early repayments of the three-year LTROs. Feature (4): forward guidance as a nontraditional monetary policy tool Fourth, all four central banks have adopted forward guidance, which refers to a communication strategy undertaken by central banks to provide information to the markets and the public (households and firms) on its future monetary policy stance.