Draghi: ECB will “possibly reconsider” its policy stance at its next meeting

FXStreet (Mumbai) - “Inflation rates are currently expected to remain at very low or negative levels in the coming months and to pick up only later in 2016” Draghi said. He expressed concern the inflation outlook and signalled that more quantitative easing might be in store when the central bank meets in March. Draghi signals that the ECB will review and “possibly reconsider” its policy stance at its next meeting as global market turmoil raises downside risks. Inflation dynamics are weaker than expected, Draghi says.

He added euro area annual HICP inflation was 0.2% in December 2015, compared with 0.1% in November. He said that the December outcome was lower than expected due to the renewed fall in oil prices and also because of lower food price and services price inflation. He thus stated that the expected path of annual HICP inflation in 2016 is now significantly lower compared with the outlook in early December. A more comprehensive picture of the impact of oil prices and other external and domestic factors on the outlook for HICP inflation will be available in the March 2016.