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ECB Draghi: Bond purchases to continue until inflation reaches target

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European Central Bank President Mario Draghi said on Wednesday that the for bond-purchases program will continue until the inflation target has been achieved and that the bank has the flexibility to make adjustments to monetary policy.

The ECB has more evidence that inflation is moving in the right direction, but there are still some uncertainties about inflation outlook, which is pushing the central bank to continue its bond purchases at the moment.

Draghi pointed out that monetary policy should move gradually and continuously to reach the target, especially as the high levels of the euro negatively affect inflation rates.

The euro zone's annual consumer price index for the month of February will be released at the end of the week, with expectations for a 1.2% rise, while the core index is expected to rise by 1%.

The euro fell during today's trading to the lowest level against the dollar at 1.2363, where it had recorded the highest level since the beginning of the week today at 1.2412.

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