Mario Draghi suggested the euro area may need fresh monetary stimulus by December as a global economic slowdown threatens the currency bloc's recovery.
"Concerns over growth prospects in emerging markets and possible repercussions for the economy from developments in commodity markets signal downside risks to the outlook for growth and inflation," the European Central Bank president told reporters in Malta on Thursday after a meeting of the Governing Council.
“The degree of monetary-policy accommodation will need to be reviewed at our December meeting when new macroeconomic projections will be available.”
The international slowdown and a renewed decline in euro- area consumer prices has increased pressure on the ECB to step up its bond-buying programme, with most economists in a Bloomberg survey already predicting that it will do so before year-end.
The euro sank against the dollar as Mr Draghi reiterated that the Governing Council was ready to act if needed.
Officials earlier left their key interest rates unchanged. The benchmark rate was kept at 0.05 per cent and the deposit rate at minus 0.2 per cent, both record lows.
The ECB’s next monetary-policy meeting is scheduled for December 3rd. Mr Draghi reiterated that bond purchases can be adjusted for duration, size and composition.
