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BRUSSELS - The downside risks to Europe's economic outlook have increased and the European Central Bank will ensure inflation does not undershoot its target as well as exceed it, ECB President Mario Draghi told the European Parliament on Thursday.

German government bond prices rose and the euro hit a session low after Draghi's comments, which markets read as pointing to a second cut in official euro zone interest rates in as many months at next week's ECB policy meeting.

"The ECB's monetary policy is constantly guided by the goal of maintaining price stability in the euro area over the medium term -- and this applies to price stability in both directions."

"Downside risks to the economic outlook have increased."

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