FRANKFURT, Sept 4 (Reuters) - The European Central Bank is ready to use all unconventional measures if needed to ward off the threat of euro zone inflation staying too low for too long, ECB President Mario Draghi said on Thursday.
Euro zone inflation slowed to 0.3 percent in August, far below the ECB’s medium-term target of just under 2 percent.
“Today’s (policy) decisions, together with the other measures in place, have been taken with a view to underpinning the firm anchoring of medium to long-term inflation expectations,” Draghi told his monthly news conference.
Speaking after the ECB unexpectedly cut interest rates and announced asset-backed security and covered bond purchase programmes, Draghi also said the Governing Council had discussed quantitative easing, or asset purchases with new money.
“Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate.”
Writing by Paul Carrel and John Stonestreet; Editing by Catherine Evans