FXStreet (Córdoba) - European Central Bank president, Mario Draghi, said in a speech in Germany that the there are no warning signs of serious financial instability and he mentioned that the global economic outlook for 2016 is uncertain. Regarding inflation Draghi said that the core rate is not the objective. He mentioned that an economic recovery is taking place in the Euro area and that the ECB is contributing to help that recovery. It was the first speech since last Thursday when Draghi said that the ECB would reexamine monetary policy at the March meeting. Key Quotes: “What’s more, though low interest rates can encourage risk-taking, there are no warning signs of serious financial instability. Financial crises are typically associated with strong credit growth and rising leverage in the banking system. What we see at the moment, however, is a nascent credit recovery and deleveraging among banks.” "Still, we’ve always said that monetary policy alone cannot be the solution. To give confidence a solid foundation, we have to help a cyclical recovery turn into a structural recovery. That depends on other policymakers in the euro area playing their part. “That risk was heightened by the fact that “core” inflation, which strips out energy and food, was also low. Core inflation is not our objective, but it tends to lead headline inflation over the medium-term.” “The outlook for the global economy in 2016 is uncertain. But our challenge, in the euro area, is to ensure that global headwinds do not blow our domestic recovery off course. For that, all policymakers need to work to build confidence.” “The ECB is contributing to securing the cyclical recovery by fulfilling our price stability mandate. And the concerns surrounding our monetary policy do not stand up scrutiny. Time and again, the critics of our decisions have been proved wrong. The ECB has acted independently from the political system and for the sake of the euro area as a whole.” “To turn the cyclical recovery into a structural recovery, however, others have to play their part. That entails concerted action on fiscal policies, structural reforms and reducing the debt overhang. Most of all, we need to continue the process to complete our monetary union on all the necessary fronts.” For more information, read our latest forex news.