Draghi under pressure to deliver on his ‘I will protect the euro’ promise

European Central Bank president Mario Draghi must back up his pledge to do what it takes to protect the euro when the bank’s policymakers meet on Thursday or else face deep disappointment from investors hungry for — and expecting — immediate action.

In his boldest comments to date, Mr Draghi said last week that, within its mandate, the ECB was ready to do whatever it takes to preserve the euro, fuelling expectation the bank could revive its bond-purchase programme as it did a year ago when it started buying the government debt of Spain and Italy.

The talk has lowered Italian and Spanish bond yields and the extent to which markets are now primed for a move on Thursday was clearly spelt out in a Reuters poll.