A central bank program involving the purchase of financial assets such as government bonds and corporate securities to inject liquidity into the economy, lower interest rates, and stimulate growth. The European Central Bank's APP has been one of the most prominent examples, used extensively to combat low inflation and support the eurozone economy. Traders closely watch APP announcements for signals about the direction of monetary policy.
Example
“The ECB expanded its Asset Purchase Programme by €500 billion, sending European bond yields to new lows.”