Asset Purchase Programme

An Asset Purchase Programme (APP) is a monetary policy tool used by central banks to stimulate the economy. The bank buys financial assets, like government bonds, from banks and other financial institutions. This increases the money in the banking system, lowering interest rates and encouraging lending and investment. The goal is to support economic growth and prevent deflation. Essentially, the central bank creates new money to buy assets, helping to keep borrowing costs low and liquidity high in the economy.