FRANKFURT, (Reuters) - The European Central Bank left interest rates unchanged at a policy meeting on Thursday, and said its president would announce further monetary policy measures at a 1330 GMT news conference.
Below are highlights of ECB President Mario Draghi's comments at the news conference.
ON INFLATION
"Annual HICP inflation is expected to remain very low or negative in the months ahead. Such low inflation rates are unavoidable in the short term given the recent very sharp fall in oil prices and assuming that no significant correction will take place in the next few months.
"Supported by our monetary policy measures we expect a recovery in demand and the assumption of a gradual increase in oil prices in the period ahead, inflation rates are expected to increase gradually later in 2015 and in 2016."
REASONS FOR TODAY'S DECISION
"Today's monetary policy decision on additional asset purchases was taken to counter two unfavourable developments. First, inflation dynamics have continued to be weaker than expected ...
"Second, while the monetary policy measures adopted between June and September last year resulted in a material improvement in terms of financial market prices, this was not the case for the quantitative results.
"As a consequence, the prevailing degree of monetary accommodation was insufficient to adequately address heightened risks of too prolonged a period of low inflation."
QE PROGRAMME
"(The Governing Council) decided to launch an expanded asset purchase programme encompassing the existing purchase programmes for asset-backed securities and covered bonds.
"Under this expanded programme the combined monthly purchases of public and private-sector securities will amount to 60 billion euros. They are intended to be carried out until end-September 2016 and will in any case be conducted until we see a sustained adjustment in the path of inflation, which is consistent with our aim of achieving inflation rates below but close to 2 percent over the medium term."
