Mario Draghi, President of the European Central Bank (ECB), gave testimony at the International Monetary and Financial Committee in Washington. He repeated the message from the last ECB meeting. He made it clear that the bank will continue to do all its necessary to boost inflation and to support the recovery. Growth outlook risks remain to the downside said Draghi because of the global economy. He expects inflation to pick later in 2016. Key Quotes: “The euro area economy is continuing on a path of gradual recovery, notwithstanding an external environment characterised by some further deceleration in economic growth and occasional bouts of financial volatility. But the outlook for euro area growth remains faced with uncertainty, mainly as a result of downside risks to growth prospects in emerging market economies, a clouded outlook for oil prices and their economic implications, and also geopolitical risks.” “The risks to this growth outlook remain on the downside, however, and relate mainly to the heightened uncertainties regarding developments in the global economy.” “Looking ahead, inflation in the euro area is likely to display slightly negative rates in the coming months before picking up later in 2016. Thereafter, supported by our substantial monetary stimulus and the projected evolution of energy prices and economic developments more generally, euro area inflation rates should recover further. In the current context, it is crucial for the ECB to ensure that the very low inflation environment does not become entrenched in second-round effects on wage and price-setting.” “The Governing Council has done and, within its mandate, will continue to do whatever is needed to pursue its price stability objective.” “In the euro area, such conditions of strong and sustained growth will require the ongoing cyclical recovery to be supported by effective structural policies. In particular, reform efforts need to be stepped up to improve the business environment, which in turn will help increase productivity, employment and growth – and also make the euro area more resilient to shocks.” For more information, read our latest forex news.