Asset Purchase Programs

Asset Purchase Programs (APPs) are initiatives used by central banks to stimulate the economy. In these programs, a central bank buys financial assets, like government bonds or mortgage-backed securities, from financial institutions. This increases the money supply, lowers interest rates, and encourages lending and investment. The goal is to boost economic activity, especially during times of economic downturn or uncertainty. By purchasing these assets, central banks aim to improve liquidity in the market, support financial stability, and ultimately foster economic growth.