FRANKFURT Jan 21 Changing circumstances
including plunging oil prices and turmoil in global markets mean
the European Central Bank would lose credibility if it did not
review its monetary policy stance in March, ECB chief Mario
Draghi said on Thursday.
"The measures we decided in December were entirely
appropriate -- and have been effective -- based on the
circumstances that were prevailing at that time," Draghi told a
"Since then these circumstances have changed," Draghi said,
noting the 40 percent fall in oil and change in the euro's
exchange rate since the ECB's last staff economic projections as
well as the selloff in markets and geopolitical factors.
"So now these conditions have worsened, and I think the
credibility of the ECB would be harmed if we were not ready to
review and possibly reconsider our monetary policy stance when
we will have full information."
The extension at December's ECB policy meeting of asset
purchases and the decision to reinvest proceeds had added some
680 billion euros of liquidity to the programme, about
two-thirds of its original size, Draghi said.
He also reiterated the Governing Council's "power,
willingness and determination to act", "and the fact that there
are no limits to our action -- "within our mandate of course".
(Writing by Catherine Evans; Editing by John Stonestreet)