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FXStreet (Bali) - ECB President Mario Draghi said they will not hesitate to add further stimulus should inflation outlook deteriorate, despite sounding reassuring on the assumption that there is little evidence of deflation in the euro area at the moment.

Draghi, being quoted by Bloomberg after the G20 meeting in Sydney, said: “We don’t have any evidence of people postponing their expenditure plans with a view to buying the same thing at lower prices, in other words we don’t see what is defined to be deflation."

The policy-maker added that “we are aware of the risks. The Governing Council is willing and ready to take any action in case these risks were to gain strength.”

Draghi went on saying: “I have to be cautious about this because we are not seeing strong, unambiguous developments; we are seeing first signs of a development which, if protracted in time, could gain strength.”

Draghi commented that pausing sterilization is “one of the instruments we’re looking at", while concluding that any medium-term setback over price stability may force the ECB "to act.”
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