Investing.com - European Central Bank President Mario Draghi on Thursday acknowledged that the growth outlook for the euro area has improved, but reiterated that quantitative easing can be increased if the outlook becomes less favorable.
The ECB stands ready to increase its asset purchase program in terms of size or duration if the outlook becomes less favorable; Draghi told the bank’s post-policy meeting press conference.
He said that risks to euro area growth outlook remain tilted to downside due to global factors, adding that the outcome of the economic analysis "confirmed the need for the continued, very substantial degree of monetary accommodation."
Draghi downplayed the significance of the jump in euro area inflation in December, saying that underlying inflation pressure remains "subdued.”
The ECB surprised markets in December when it announced that it would reduce the size of its asset purchase program to €60 billion from April from €80 billion currently, but extended the quantitative easing program until the end of the year.
Draghi indicated that ECB officials did not discuss the need for easing the pace of bond purchases at this month's policy meeting.
Draghi said the ECB continues to expect its key interest rates to remain at present or lower levels for an extended period of time and well past the horizon of the net asset purchases.
Draghi said the economic effect of negotiations with the U.K. on its exit from the European Union will depend on the timing and the shape of any deal, before adding that it was still too early to comment beyond that.
In response to questions about U.S. President-elect’s Donald Trump's recent comments on the euro and the EU, Draghi said he prefers to assess policies rather than words.
"I just won’t make any comment on that, it’s just too early. Let’s see what the real policies are following these statements."
At Thursday's meeting, the ECB kept its overnight deposit rate steady at -0.40%. The main refinancing rate was unchanged at zero, while the rate on the marginal lending facility stayed at 0.25%.