Mario Draghi said the European Central Bank (ECB) might startbroad-based asset purchases if the inflation outlook worsens as heprepares the ground for one of the most radical policies in theECB's history.

“The objective here would not be to defend the current stance,but rather to increase meaningfully the degree of monetaryaccommodation,” the ECB president said in a speech in Amsterdamtoday. “The Governing Council is committed—unanimously—to usingboth unconventional and conventional instruments to dealeffectively with the risks of a too-prolonged period of lowinflation.”

Draghi's comments are his most explicit so far on what wouldprompt action similar to the quantitative easing programs at theU.S. Federal Reserve and Bank of England. Inflation data next weekwill give further clues as to whether consumer-price gains areaccelerating as the economy recovers or if the euro area isteetering close to deflation.