Mario Draghi reiterated the bank is ready to provide more stimulus in December

President Mario Draghi reiterated the bank is ready to provide more stimulus in December if needed to boost inflation.

ECB boss Draghi said the central bank’s current stimulus program will need to be re-examined at the December meeting, indicating more easing or a rate cut could be on the way. The comments reflect the message from the ECB’s Oct. 22 meeting, when Draghi expressed concern over the low inflation levels in the eurozone.

“Given the turnaround in the ECB’s view on deposit rate cuts, we expect a 10 basis point cut together with a strong signal that further deposit cuts are on the table. We believe the ECB will reintroduce its old forward guidance, stating that it expects policy rates to stay at present or lower levels for a long time,” analysts at Danske Bank said in a note.

“The main reason we expect the ECB to deliver a deposit rate cut is the strong signal from Draghi, that this is being considered. He has more or less cornered the hawkish ECB members again and pre-announced additional easing,” they said.

Speaking at the ECB Forum on Banking Supervision in Frankfurt Wednesday morning, Draghi urged European policy makers to complete the integration of the region’s banking sector.