ECB will add to stimulus if outlook for prices falls further, says Draghi

ECB president Mario Draghi said policymakers are ready to add to stimulus if the outlook for prices deteriorates, although there are currently no signs of deflation in the eurozone.

“We don’t have any evidence of people postponing their expenditure plans with a view to buying the same thing at lower prices; in other words we don’t see what is defined to be deflation,” Draghi said after a G20 meeting in Sydney.

“We are aware of the risks. The Governing Council is willing and ready to take any action in case these risks were to gain strength.”