ECB 'not resigned' to low inflation 'even for now', Draghi says

Policymakers at the European Central Bank "are not resigned" to a low rate of inflation for longer or "even for now", Mario Draghi said.

In remarks at the ECB Forum in Sintra, Portugal, Draghi described the monetary authority's policy as "patient, persistent and prudent".

He also said that further interest rate cuts remain a part of the ECB tool kit, that the monetary authority remained committed to its price-stability objective and that "considerable" room remained to expand quantitative easing in the euro area.

Reacting to Draghi's remarks, traders pushed euro area government bond yields sharply lower, with that on Italian 10-year government notes falling by 12 basis points to 2.18% and for similarly-dated Spanish notes down by seven basis points to 0.45%.