The President of the European Central Bank has highlighted his concerns over how much the region's economies rely on accommodative monetary policy.
Mario Draghi told the European Banking Congress in Frankfurt that the recent increase in prices is mainly driven by the low financing conditions, and as such, the ECB is ready to continue with the current monetary policy stance.
"Despite the uplift to prices provided by the gradual closing of the output gap, a sustained adjustment in the path of inflation still relies on the continuation of the current, unprecedented financing conditions," he said.
"It is for this reason that we remain committed to preserving the very substantial degree of monetary accommodation, which is necessary to secure a sustained convergence of inflation towards level below, but close to, 2 percent over the medium-term," Draghi said.
The ECB began its quantitative easing programme in January of 2015 and it is set to expire in March 2017. However, analysts are expecting the central bank to announce an extension in QE when it meets next month.