THE HAGUE, May 10 (Reuters) - It is too early for the European Central Bank to declare victory in its quest to raise inflation in the euro zone to its target of almost 2 percent, ECB President Mario Draghi said on Thursday.
“Incoming data confirm that the cyclical recovery of the euro area economy is becoming increasingly solid and that downside risks have further diminished,” he told a hearing of the Dutch parliament.
“Nevertheless, it is too early to declare success. Underlying inflation pressures continue to remain subdued and have yet to show a convincing upward trend.”
He added the benefits of the ECB’s ultra-easy policy “clearly outweigh” its potential side effects. (Reporting By Balazs Koranyi; Writing by Francesco Canepa and Andreas Framke in Frankfurt)