ECB’s Draghi says monetary policy can not address structural problems

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The European Central Bank's (ECB) Mario Draghi has said that monetary policy has managed to help the European Union avoid a destructive scenario, but that it has limits.

Draghi said that the Outright Monetary Transactions measure has acted as a full backstop, but that monetary policy can not address the transmission mechanism or structural problems.

The central banker said that there is a subdued outlook for inflation in the medium term, which warrants accommodative policy. He expects interest rates to remain at current or lower levels for an extended period of time.