UK Markets closed

Growth improving but ECB accommodation still needed - Draghi

Mario Draghi, President of the European Central Bank (ECB) speaks during a news conference at the ECB headquarters in Frankfurt April 4, 2017. REUTERS/Kai Pfaffenbach - RTX341EN

FRANKFURT (Reuters) - Global growth and trade appear to be picking up strength but risks for the euro zone economy remain tilted to the downside, so 'very substantial' accommodation is still necessary, European Central Bank President Mario Draghi said on Friday.

In a statement largely reflecting the bank's March policy statement, Draghi said that while the risk of deflation has largely disappeared, underlying inflation has shown no convincing upward trend.

"There are signs that the recovery is broadening across countries and sectors," Draghi said in a statement to the International Monetary and Financial Committee in Washington. "There are also signs of a somewhat brighter global recovery and increasing global trade."

Draghi said that inflation -- 1.5 percent in March -- would likely fluctuate around its current level in the coming months, mainly reflecting exchange rate and energy price movements.

(Reporting by Balazs Koranyi; Editing by Gareth Jones)