Further downside risks to euro area's growth and inflation outlook have emerged as a result of currency headwinds and weakness in commodity prices, President of the European Central Bank Mario Draghi warned.
Draghi said slowing growth in emerging markets, a stronger euro and the fall in oil prices were the main factors hurting the outlook for growth, but that more time was needed to assess if the central bank would release further monetary stimulus as a result.
"As a result, renewed downside risks to the outlook for growth and inflation have emerged. For many of these changes, it is too early to judge with sufficient confidence whether they will cause lasting slippage from the trajectory that we initially expected inflation to follow when we decided to expand our asset purchase programme in January," Draghi said in a speech addressed to the European Parliament's Committee on Economic and Monetary Affairs.
The central bank chief also said that it was too soon to determine how bad the loss of growth in emerging markets was and whether the economic situation seen in the region was temporary or permanent.
"We will therefore monitor closely all relevant incoming information and its impact on the outlook for price stability," he added.
The Frankfurt-based ECB committed to pump some 1.1 trillion euros into the currency bloc earlier in the year in an effort to revive the euro zone's drooping economy and lackluster inflation outlook.
Read MoreECB's Draghi pledges more QE if needed
In a press conference following the ECB's monthly monetary policy meeting earlier this month, Draghi said the central bank was poised and ready to up the "size, composition and duration" of the bond-buying program if necessary.
His comments on Wednesday come after the U.S. Federal Reserve decided to keep interest rates on hold amid heightened global financial markets volatility as fear of a slowdown in China have dented investor sentiment.
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