Monetary policy

What is the pandemic emergency purchase programme (PEPP)?

The European Central Bank (ECB) launched the pandemic emergency purchase programme (PEPP) in March 2020 to combat the impact of the COVID-19 crisis on the economy.

The PEPP is a temporary asset purchase programme of public and private sector securities. An initial envelope of €750 billion was announced in March 2020 and subsequently increased to €1,850 billion.

The PEPP offers greater flexibility over time, among jurisdictions and across eligible asset classes, than other asset purchase programmes, supporting the smooth transmission of monetary policy to all euro area countries and agents during the pandemic.

The Governing Council ended net purchases under the PEPP at the end of March 2022.