Mario Draghi has paved the way for a fresh package of monetary stimulus to boost the ailing eurozone economy before he departs in October, signalling the European Central Bank will cut rates and embark on a fresh round of asset purchases.

The ECB president said on Thursday that officials at the eurozone’s central bank would look into a range of stimulus options — including rate cuts, a commitment to keep policy exceptionally loose for years to come and another quantitative easing package — to counter fears that the bank would persistently undershoot its inflation target of just under 2 per cent.

“A considerable mass of inflation expectations are moving towards [a belief that there will be] lower inflation,” said Mr Draghi. “We don’t like it and therefore we are determined to act.”