ECB's Draghi Says Substantial Accommodation Still Needed

The ECB has decided to keep key interest rates unchanged, expecting them to remain stable for an extended period. The asset purchase program will continue at a monthly pace of €60 billion until at least December 2017, or longer if needed, to ensure inflation aligns with targets. Economic expansion in the euro area is strengthening, but inflation remains subdued due to weak energy prices. A substantial degree of monetary accommodation is necessary to support inflation dynamics. The ECB is prepared to adjust the asset purchase program if financial conditions or inflation outlooks change.

What factors are contributing to the current inflation levels according to the text?

What actions is the ECB prepared to take if the economic outlook changes?