Key points for this month:
- The pace of the expanded APP slowed markedly in August, for all the programmes. ABSPP purchases dropped to virtually zero.
- In August, the average maturity of German purchases under the PSPP remained relatively low, at 5.8 years only, while it fell to 9.9 years in France after a very unusual month (13.8 years in July).
- The deviation from the capital key rule increased in August. For the fifth month in a row, the share of German securities purchased under the PSPP (25.5% in August) has been below Germany’s capital key weight. The share of French securities purchased climbed to 24.1% for the first time (instead of 20.7%) and is now converging to Germany’s share.
- The ECB’s balance sheet accounts for 38.5% of GDP. Excess reserves climbed further and are now close to €1800bn.