European Central Bank will act urgently against possible risk of deflation

Mario Draghi, the ECB president, has said forcefully: "We will do what we have to do to raise inflation and inflation expectations as soon as possible, as we need our function to stabilize prices." In that sense, has opened the door to large-scale purchases of government bonds.

The president of the European Central Bank (ECB), Mario Draghi, has said the European Banking Congress banking Congress: "we will do what we need to increase inflation and inflation expectations as quickly as possible, as required by our mandate stability prices. "

To which he added that expand channels invention if necessary. "If our monetary policy is not sufficiently effective in their current career or more risks to the inflation outlook materialize, we will increase the pressure and expand more channels through which we intervene appropriately modifying the size, pace and composition of our purchases, "said Draghi.

In that sense, the president of the European Monetary Agency has indicated that these measures could be large-scale purchase of government bonds, known as Quantitative Easing (QE). A measure to block opposing Germany.

Mario Draghi has also warned of the difficult economic situation in the eurozone, where growth remained weak and no improvement is expected in the coming weeks. "In a short-term horizon, however, the indicators have been falling to levels judged too low," he said.

"Measures of inflation based surveys have generally been more stable, but the last Survey Professional Analysts also indicates some decline and all horizons."

The eurozone economy is trapped in a phase of low inflation and weak growth and last month stepped up efforts to boost recovery by flooding the market with billions of euros to unlock channel lending to households and businesses.

Banks open the tap of credit

In this conference, Draghi also said that banks are beginning to open the tap of credit. It has not only ensured that the lending recovers but also, applied rates are reduced.

Securitisation

Moreover, today the ECB could start buying asset-backed (ABS) -titulizaciones- from today, values after publishing the operational details of the new program is part of the extraordinary measures that the institution aims to combat low inflation and stimulate lending in the euro area.

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