FRANKFURT Feb 6 The euro zone's economic
recovery is picking up strength but still requires stimulus, so
the European Central Bank is not ready to withdraw support, ECB
President Mario Draghi told the European Parliament's committee
on economic affairs on Monday.
Inflation may be picking up but largely due to the one-off
impact of oil price rise and the ECB will look through the spike
if deemed temporary, Draghi told a hearing.
"Support from our monetary policy measures is still needed
if inflation rates are to converge towards our objective with
sufficient confidence and in a sustained manner," Draghi said.
"Our monetary policy strategy prescribes that we should not
react to individual data points and short-lived increases in
inflation," Draghi said. "We therefore continue to look through
changes in HICP inflation if we believe they do not durably
affect the medium-term outlook for price stability.
(Reporting by Balazs Koranyi; Editing by Francesco Canepa)