At the bank's last monetary policy meeting in January, Draghi announced that the Governing Council would review and possibly reconsider its stimulus program in early March.
"The focus of our deliberations will be twofold, " Draghi told lawmakers Monday.
"First, we will examine the strength of the pass-through of low imported inflation to domestic wage and price formation and to inflation expectations. This will depend on the size and the persistence of the fall in oil and commodity prices and the incidence of second-round effects on domestic wages and prices.
"Second, in the light of the recent financial turmoil, we will analyze the state of transmission of our monetary impulses by the financial system and in particular by banks.
"If either of these two factors entail downward risks to price stability, we will not hesitate to act."
A large part of the European markets' roller-caster ride has been down to fears about the stability of the region's banks, the level of bad loans they have on their books and their ability to ride out further shocks.
However, Draghi taold European lawmakers that the state of Europe's lenders at the moment is very different from the global financial crisis of 2007-2008.
"Banks have built higher and better-quality capital buffers, have reduced leverage and improved their funding profiles," the ECB President said.
"Moreover, the Basel Committee on Banking Supervision noted that substantial progress has been made towards finalising post-crisis reforms and that the remaining elements of the regulatory reform agenda for global banks are being finalised.
"The clarification of these elements will provide regulatory certainty on the stability of the future framework. This will support the banking sector's ability to make long-term sustainable business plans into the future."
Since the ECB policy-setting meeting, economic data has been mixed, creating uncertainty as to the ECB'S next move — and giving particular importance to Draghi's words on Monday.
Euro zone economic growth slowed to a four-month low in January, according to Markit's composite purchasing managers' index (PMI). Expansion slowed in both manufacturing and the services sector, with growth easing in Germany and Italy and the French economy remaining close to static.
However, the labor market in the euro zone has shown signs of strength. Seasonally adjusted unemployment in the area averaged 10.4 percent in December — the lowest rate recorded since September 2011 and the second consecutive monthly decline.