A strict language on the trade front could wake euro bears up.
For 2020, the inflation forecast was raised to 1.7 percent from 1.5 percent.
Meanwhile, he noted, the US Federal Reserve is raising rates and reducing its holding of bonds.
German manufacturing orders fell more than expected (http://www.marketwatch.com/story/german-manufacturing-orders-drop-miss-forecasts-2018-03-08) in January, dropping 3.9%, compared with forecasts of a 1.5% decline.
The Stoxx Europe 600 Index increased 1.1 percent to the highest in a week. Germany's DAX 30 index finished up 0.9% at 12,355.57. U.S. stock futures were mixed.
Last week the S&P 500 fell 1.3% on fears of a global trade war as Trump announced the United States was adopting tariffs of 25% on steel and 10% on aluminium.
US West Texas Intermediate (WTI) crude futures were at $US61.22 a barrel, down 0.1 per cent, while benchmark Brent was 0.2 per cent lower at $US64.20 a barrel.
A number of policymakers on the governing council favour a sudden stop to the €30bn monthly asset purchase program in the aftermath of that date, while some favour a change to the wording with respect to downside risks to the economy.
The ECB held interest rates on the main refinancing operations unchanged at 0.00 percent, according to a statement from the bank after Governing Council on Thursday.
Markets have this week nervously watched a populist surge in the eurozone's third-largest economy and barbs exchanged between Washington and Brussels over looming USA tariffs on steel and aluminum and possible European Union counter-measures.
During the subsequent European Central Bank press conference, Draghi was able to tone down any hawkishness in the statement in his responses to questions from the assembled group of journalists.
In the US, Mr Trump's decision on tariffs, which appeals to the President's Rust Belt base, has led to the resignation of Gary Cohn, Mr Trump's top economic adviser, who was a centrist force in the White House.
US President Donald Trump said on Thursday he was prepared to meet North Korean leader Kim Jong Un for the first US-North Korea summit, marking a potentially dramatic breakthrough in nuclear tensions with Pyongyang.
Based on our regular economic and monetary analyses, we chose to keep the key European Central Bank interest rates unchanged. This compares to a fall of 0.1% seen in the previous month. Rather than show that the global economy appears to be in fairly good health, they are likely to be used as further evidence by President Trump's trade hawks that his current policy is appropriate.
The inflation rate has been away from the ECB's target of "below, but close to 2 percent" for sometime now. That is seen as a precursor to a broader policy revision later this year to rein in its extraordinary stimulus measures. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We operate a policy of independence, which requires our employees to act in our clients' best interests and to disregard any conflicts of interest in providing our services.