MILAN, Oct 31 (Reuters) - The European Central Bank (ECB) is ready to do whatever it takes to keep its mid-term inflation target on course, the head of the bank Mario Draghi said in a newspaper interview published on Saturday.
“If we are convinced our medium-term inflation target is at risk we will take all the actions necessary,” Draghi told the Italian daily Il Sole 24 Ore.
Draghi said the ECB already had an impressive set of monetary policy instruments at its disposal.
“It is however too early to say... ‘this is the catalogue’ and that there are no more.”
Asked if a cut in the deposit rate was an instrument that could be used together with changes to quantitative easing policies, Draghi said it was “premature to make this evaluation”.
The president of the ECB said the risk of the euro zone fragmenting had diminished greatly “if not vanished”.
Greek debt was sustainable if, first of all, the government met the obligations it had signed up to, he said.
To be sustainable it also needed to be cut, he added. (Reporting by Stephen Jewkes; editing by Susan Thomas)