Decision (EU) 2015/2464 of the European Central BankShow full title

Decision (EU) 2015/2464 of the European Central Bank

of 16 December 2015

amending Decision (EU) 2015/774 on a secondary markets public sector asset purchase programme (ECB/2015/48)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first indent of Article 127(2) thereof,

Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular to the second subparagraph of Article 12.1 in conjunction with the first indent of Article 3.1, and Article 18.1 thereof,

Whereas:

(1) On 4 March 2015, the Governing Council adopted Decision (EU) 2015/774 of the European Central Bank (ECB/2015/10)(1) which established a secondary markets public sector asset purchase programme (hereinafter the ‘PSPP’). By establishing the PSPP, the Governing Council expanded the existing asset purchase programmes to include public sector securities. Alongside the third covered bond purchase programme (hereinafter the ‘CBPP3’) and the asset-backed securities purchase programme (hereinafter the ‘ABSPP’), the PSPP is part of the expanded asset purchase programme (hereinafter the ‘APP’). The APP aims to further enhance the transmission of monetary policy, facilitate the provision of credit to the euro area economy, ease borrowing conditions for households and firms and contribute to returning inflation rates to levels closer to 2 %, consistent with the ECB's primary objective of maintaining price stability.

(2) On 3 December 2015, the Governing Council decided, in line with its mandate to ensure price stability, to revise certain of the PSPP's design features, to secure a sustained adjustment in the path of inflation towards levels that are below, but close to 2 %, over the medium term. The revisions are in line with the Governing Council's monetary policy mandate and duly reflect risk management considerations.

(3) Accordingly, in order to achieve the PSPP's objectives, the Governing Council decided to extend the intended horizon of purchases under the PSPP until the end of March 2017, or beyond, if necessary, and in any event until the Governing Council sees a sustained adjustment in the path of inflation that is consistent with its aim of achieving inflation rates below, but close to, 2 % over the medium term. The Governing Council decided to extend the intended horizon of the purchases under the CBPP3 and the ABSPP accordingly.

(4) The Governing Council also decided that, in order to enhance the flexibility of the PSPP and thereby support the continued smooth implementation of purchases at least until its intentional end date, euro-denominated marketable debt instruments issued by regional and local governments located in the euro area will be eligible for regular purchases under the PSPP by the national central banks of the jurisdiction in which the issuing entity is located.

(5) The Governing Council also decided to reinvest the principal payments of the securities purchased under the APP as the underlying securities mature, for as long as necessary, thus contributing to favourable liquidity conditions and to an appropriate monetary policy stance.

(6) With regard to debt securities referred to in Article 3(2)(c) of Decision (EU) 2015/774 (ECB/2015/10), different issuer and issue share limits apply. These limits will be set by the Governing Council taking due account of risk management and market functioning considerations.

(7) Therefore, Decision (EU) 2015/774 (ECB/2015/10) should be amended accordingly,

HAS ADOPTED THIS DECISION:

(1)

Decision (EU) 2015/774 of the European Central Bank of 4 March 2015 on a secondary markets public sector asset purchase programme (ECB/2015/10) (OJ L 121, 14.5.2015, p. 20).