ECB's Draghi says loose monetary policy is more important than ever after talk of Fed taper

Following global increases in bond yields, European Central Bank (ECB) president Mario Draghi has issued a speech entitled "Stable Euro, Strong Europe" (release).

Draghi attempted to keep a lid on bond yields, saying that the ECB's Outright Monetary Transactions (OMT) measure is now important than ever:

Indeed, I would say that OMT is even more essential now as we see potential changes in the monetary policy stance with associated uncertainty in other jurisdictions of the integrated global economy.

Since talk of US Federal Reserve tapering - a reduction in the rate at which the Fed's balance sheet is expanded - peripheral yields have been rising.

Draghi confirmed that monetary policy would remain accommodative that he expects monetary stimulus and improvements in financail markets to support recovery later this year.