Mario Draghi: The ECB will boost quantitative easing "if necessary"; growth forecast cut

ECB President Mario Draghi is just starting his first press conference since the summer break.

So far Draghi is, as expected, signalled the ECB is willing to do what's necessary to prop up Europe.

Draghi says there's "continue, though somewhat weaker, economic recovery" and there are "renewed downsides for growth and inflation."

The big threat here is China.

Europe is once again facing deflationary pressure after Chinese recent currency and stock market weakness, which has led investors to pile into the "safe haven" euro. The knock on effect of a strong euro is exports are more expensive, meaning there's less money coming into countries.

With less money to go around, price rises are slowing - and could even slip to deflation. As a result, analysts thought Draghi could extend or ramp up the programme of quantitive easing in Europe, first introduced 6 months ago.

Draghi's stopped short of this, saying it's too "premature" to take action and the risks could be "transitory". But he says Draghi will use "all the instruments" at its disposal and would consider "adjusting the size, composition, and duration" of QE.

He says the ECB will fully impliment its €60 billion-a-month asset buying allowance, running through to 2016 "or beyond if necessary."

As a result of the recent Chinese turmoil, the knock-on effect on emerging markets, and falling oil prices the ECB has cut its GDP growth forecast for Europe in 2016 to 1.7%, from 1.9%.

Draghi's press conference is the second major announcement from the ECB today. The central bank has already announced it's holding its bank lending rate steady at 0.05%.

Keep checking back we'll update as the conference goes on