EPRS Admin By / February 1, 2022

ECB holdings by programme

ECB holdings, by programme, € billion

ECB holdings, by programme, € billion

The ECB Governing Council will terminate net asset purchases under the PEPP as planned at the end of March 2022. The maturing principal payments from securities purchased under the PEPP will be reinvested until at least the end of 2023. In any case, the future roll-off of the PEPP portfolio will be managed to avoid interference with the appropriate monetary stance.
While a swift monetary policy intervention was crucial in the advent of the pandemic, the toolset available to the ECB had already been expanded in the previous couple of years. In order to re-calibrate the new toolset with a forward-looking strategy, the ECB published a monetary strategy review in July 2021. The key change was a new interpretation of price stability (the ECB’s primary objective) as a symmetric inflation rate of 2 % over the medium term. The aim of this review was to adapt monetary policy and central banking to broader macroeconomic trends, such as digitalisation, globalisation and demographic change, while also considering the implications of climate change and the green/low-carbon transition, in line with the EU’s climate goals and objectives. This has substantial implications for the primary objective (price stability), for the ECB’s monetary policy assessment and for its monetary policy operational framework going forward.

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