Draghi : Risk to ECB's Price Stability Mandate Have Increased -- Report

        FRANKFURT--Risks to the European Central Bank's ability to fulfill its price-stability mandate have increased over the past six months, the bank's president, Mario Draghi, said in an interview with daily newspaper Handelsblatt.
        He also said medium-term inflation expectations have fallen since June.
        The remarks could fan speculation the ECB will embark on a sovereign bond-buying program sooner rather than later.
        Mr. Draghi said preparations are being made to "alter the volume, tempo, and content of our measures early in 2015, if needed, to respond to a period of inflation that is too low."
        He also admonished governments for slow reforms.
        "Weak reforms, bureaucracy and tax hurdles are impairing Europe's recovery. If we don't solve that, our growth will remain weak," he said.
        Mr. Draghi said he expects the region's moderate economic recovery to continue and for interest rates to remain low for some time.
        The ECB's mandate is to maintain price stability, which it defines as an annual average inflation rate of just under 2% over the medium term.
        Write to Frankfurt bureau at frankfurt@priority.emea.dowjones.com
        (END) Dow Jones Newswires

        January 02, 2015 03:34 ET (08:34 GMT)

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