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Draghi: We will do 'whatever is needed' to raise inflation

Staff writer ▼ | April 7, 2016
European Central Bank head Mario Draghi has said the monetary authority will do "whatever is needed" to push up inflation from its dangerously low levels.
Mario Draghi
Europe   The current stimulus was "without precedent"
Draghi's remarks underline the bank's willingness to step up its stimulus efforts even though they were increased as recently as its last meeting on March 10. His speech indicated a readiness to push back against criticism from some media and politicians in Germany, the eurozone's biggest member, who say the ECB has done too much.

Draghi said that the current stimulus was "without precedent" and was supporting a moderate economic recovery. He said it was time for national governments to start taking steps to make their economies grow faster, producing more demand for goods and services and raising inflation and employment.

He said that "the ECB has and will continue to do whatever is needed to comply with its mandate".

"We have solid evidence that the monetary policy measures that we have taken since mid-2014 are being effective in delivering their intended impact," he said. He cited ECB statistics showing that borrowing costs have fallen steeply for both businesses and consumers.

The ECB on March 10 decided to increase its monthly bond purchase stimulus to €80bn a month from €60bn.