ECB chief Draghi: Inflation situation increasingly challenging; reiterates long-term inflation expectations still consistent with price stability - comments from Frankfurt European Banking Congress
>>> Policy
- Reiterates ready to step up action if needed
- Reiterates committed to adjust size, pace and composition of asset purchases if needed
- Notes large asset purchases in the US, Japan led to exchange rate depreciation.
>>> Inflation:
- Shorter-term inflation expectations 'excessively' low
- Must be very watchful low inflation does not percolate through economy.
- Firm anchoring of inflation is critical today.
- Reiterates ready to step up action if needed
- Will seek to raise inflation as fast as possible.
- Currently seeing some volatility in inflation expectations
>>> Growth
- Reiterates economic situation in the euro area remains difficult; strong recovery not likely in coming months, as underlying growth momentum remains weak.