Draghi Signals ECB Ready To Act As Deflation Risk Is Rising

European Central Bank Mario Draghi has signaled the ECB could be closer to launching full-scale quantitative easing, as he said the risk of deflation has increased. "The risk that we do not fulfill our mandate of price stability is higher than six months ago," Draghi reportedly said in an interview with Germany's Handelsblatt newspaper published Friday. Given this, the ECB is making technical preparations to "adjust the scope, pace and composition of measures at the start of 2015, should this be necessary to respond to a too-long period of low inflation", Draghi said. Eurozone inflation came in at 0.3% in November, well below the ECB's target of 2%. The euro dropped to its lowest level against the dollar since June 2010 after the reported comments, to 1.2045.