Draghi Determined to Do Anything to Raise Inflation Quickly

The European Central Bank declared on Friday that it is all set to act rapidly to increase anaemic inflation in the euro zone. The bank's announcement gives definite hints of releasing its new motivation measures in a meeting on December 3.

Draghi said that the risk has increased of ECB missing the target they wanted to hit. "If we decide (on December 3) that the current trajectory of our policy is not sufficient to achieve our objective, we will do what we must, to raise inflation as quickly as possible," he said in a conference, as reported by Reuters.

Draghi also said that the intensity of euro zone's improvement was reasonable and the worldwide outlook for demand, especially in developing nations, has declined altogether the previous months. Bundesbank's President Jens Weidmann, widely known as one of the most suitable critics of the policies of ECB suggested waiting before taking steps to introduce new policies.

"I see no reason to talk down the economic outlook and paint a gloomy picture, we should also not forget that the monetary policy measures already taken still need time to fully feed into the economy," Weidmann said in the same conference.

Germany's Finance Minister Wolfgang Schaeuble, who is also known as a famous ECB critic was also expected to express his views at the same event. Taking after Draghi's remarks, the euro fell as low as $1.0664 and was traded the lowest in three months as compared to Sterling. However, it moved back to its position with $1.07.

Draghi said, "If we conclude that the balance of risks to our medium-term price stability objective is skewed to the downside, we will act by using all the instruments available within out mandate," according to Live Mint.

The ECB currently is purchasing bonds worth 60 Billion euros on a per month basis and is determined to continue doing so till at least September 2016. The deposit rate is at -0.2 percent, the record lowest.

Nick Kounis, Head of Macro research at Amro Bank NV in Amerstdam said, "There is a little room for doubt that the central bank is not only about to step up its monetary stimulus, but plans to do so decisively," as revealed by Bloomberg Business.

Worldwide markets were already expecting big steps for ECB on December 3 event. The steps expected from ECB most likely were an extra decrease in the deposit rates and expansion of asset acquisition beyond their decided end in September 2016.