How did ECB bond-buying programmes aim to stimulate the eurozone economy?

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The European Central Bank's Bond-Buying Programmes Aimed to Stimulate the Eurozone Economy by Lowering Borrowing Costs

The European Central Bank (ECB) implemented bond-buying stimulus programmes primarily to counteract deflationary pressures and foster economic growth by reducing the cost of borrowing for governments, businesses, and consumers. These initiatives were designed to encourage increased spending and investment across the eurozone.
Bond Purchases to Reduce Borrowing Expenses

Launched in 2014, the initial bond-buying stimulus programme was introduced to combat the threat of deflation and stimulate economic activity. By purchasing bonds on the open market, the ECB effectively lowered the yields on these securities. This action directly translated into reduced borrowing costs for sovereign states, corporations, and individuals, making it more attractive for them to take on debt for consumption and investment purposes.
Continued Support Through Asset Purchases

In 2020, the ECB introduced an additional asset-purchasing scheme to maintain downward pressure on borrowing costs and provide economic support during the unprecedented challenges posed by the coronavirus pandemic. These two programmes, in conjunction, resulted in the acquisition of trillions of euros worth of assets. Despite these efforts, inflation remained stubbornly below the ECB's target of two percent for an extended period.
Indirect Mechanism for Economic Stimulation

The underlying principle of the bond-buying programmes was to inject liquidity into the financial system and influence market interest rates. By keeping borrowing costs low, the ECB aimed to create an environment conducive to increased economic activity. Lower financing costs were intended to spur investment in new projects, encourage consumer spending on durable goods and services, and provide governments with more affordable means to finance public services and infrastructure.

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How did ECB bond-buying programmes aim to stimulate the eurozone economy?

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