ECB ready for QE if current measures don't work

[FRANKFURT] A raft of policy measures introduced last month will help lift inflation and support bank lending but the European Central Bank stands ready to create money in future if required, president Mario Draghi said yesterday.

The ECB left interest rates steady a month after cutting them to record lows and pushing the deposit rate into negative territory for the first time - effectively charging banks for holding their money overnight to prompt them to lend to businesses.

The measures unveiled in June also included extending the duration of unlimited cheap liquidity for banks until the end of 2016, and offering them a four-year loan plan.