Draghi: ECB measures will hit inflation target

Frankfurt

MARIO Draghi said that the European Central Bank's expanded asset purchases will succeed in pushing inflation in the euro area back towards its goal.

"We can deploy and we will deploy monetary policy in a way that can and will stabilise inflation in line with our objective," the ECB president said at a conference in Frankfurt, three days into his 1.1 trillion-euro (S$1.6 trillion) bond-buying programme. "Our monetary policy is certainly supporting the recovery."

In his first public appearance since QE started, Mr Draghi can point to falling yields on government debt and a slide in the euro as signs that the programme to buy 60 billion euros a month of sovereign and private-sector debt is making a mark. What he can't yet show is whether banks and companies will respond by putting the fresh cash to…