ECB stands ready to take further actions, Draghi says

In prepared remarks for his testimony on Monday before the European parliament (EP), European Central Bank (ECB) president Mario Draghi stated that the monetary authority is ready to take further action if deemed necessary.

“[The governing council] stands ready to use additional unconventional instruments within our mandate, and alter the size and / or the composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation,” Draghi was set to tell the EP´s Economic and Monetary Affairs Committee.

However, he added that the success of the measures it undertakes also hinges on policies outside the scope of monetary policy, including structural economic reforms – such as increasing the competitiveness of corporates.

The central banker added that it is too early to asses the impact of the targeted long-term refinance operations (TLTROs) which were inaugurated last Thursday. Yet in his opinion their announcement has already had a “noticeable positive impact on financial market sentiment.”