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His
comments confirm the ECB is in no rush to wind down his
ultra-easy monetary policy of negative interest rates and
aggressive bond purchases despite insistence from richer euro
zone countries such as the Netherlands, where Draghi was
speaking on Thursday, and Germany.
"Incoming data confirm that the cyclical recovery of the euro
area economy is becoming increasingly solid and that downside
risks have further diminished," he told a hearing of the Dutch
parliament.
"Nevertheless, it is too early to declare success. Underlying
inflation pressures continue to remain subdued and have yet to
show a convincing upward trend."
The ECB is expected to tweak its policy message next month to
reflect an improved economic situation but keep policy on hold.
Draghi said the benefits of the ECB's monetary policy were
outweighing its side effects, but acknowledged rising property
prices and high household debt in some countries, including the
Netherlands.
"We do not currently see compelling evidence of overstretched
asset valuations at the euro area level, but we do see that real
estate dynamics or high household debt levels in some countries
signal the risk of increasing imbalances," Draghi said.
"Such risks also exist in the Netherlands."
(Additional reporting by Andreas Framke in Frankfurt; Writing by
Francesco Canepa; editing by Ken Ferris)
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