Mario Draghi said inflation expectations have deterioratedacross the euro area and signaled policy makers are ready to addfresh monetary stimulus.

In his strongest indication yet that officials aren't finishedwith measures to stave off a Japan-style stagnation, the EuropeanCentral Bank (ECB) president told his international counterparts inJackson Hole, Wyoming, today that investor bets on euro-areainflation have “exhibited significant declines at all horizons” inAugust.

“The Governing Council will acknowledge these developments andwithin its mandate will use all the available instruments needed toensure price stability over the medium term,” Draghi said inad-libbed remarks during a speech at the Federal Reserve Bank ofKansas City's annual economic symposium.