ECB President Mario Draghi says risk outlook “remains tilted to the downside,” and more stimulus will be needed if the outlook doesn’t improve.
Says interest-rate cuts and more QE are part of its arsenal. ECB has headroom for more asset purchases.
“The prolongation of risks has weighed on exports and in particular on manufacturing. In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required”
Also says ECB is able to enhance forward guidance by “adjusting its bias and its conditionality to account for variations in the adjustment path of inflation”
Source : Bloomberg