FRANKFURT?The eurozone's economic recovery remains heavily reliant on the European Central Bank's stimulus measures, ECB President Mario Draghi said Friday, indicating that the bank is likely to extend its easy-money policies at a policy meeting next month.

"We cannot yet drop our guard," Mr. Draghi said at a banking conference here. "The ECB will continue to act, as warranted, by using all the instruments available" until inflation picks up sustainably, he said.

ECB policy makers are preparing for a key meeting on Dec. 8, where they are expected to decide whether to extend their ?80 billion ($85.5 billion) a month bond-purchase program, known as quantitative easing. The program is due to end in March.

With its bond purchases, the ECB hopes to lower interest rates across the bloc's ?10 trillion economy, thereby boosting lending, growth and inflation. But despite Frankfurt's efforts, inflation was just 0.5% last month, some way from the ECB's target of just below 2%.

"We do not yet see a consistent strengthening of underlying price dynamics," Mr. Draghi warned. He said the ECB is "committed to preserving the very substantial degree of monetary" stimulus.

Write to Tom Fairless at tom.fairless@wsj.com

(END) Dow Jones Newswires

November 18, 2016 04:35 ET (09:35 GMT)

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