The European Central Bank is watching prices closely ahead of its policy meeting on June 5. President Mario Draghi signalled it could take action if there are signs low inflation is becoming entrenched.

He was addressing delegates at the first of the ECB’s new annual central banker conference held in Sintra in Portugal. It is seen as the answer to the US Federal Reserve’s annual monetary conference and focused on a range of subjects.

“It’s a day we will also talk about economic policy that is necessary to get that growth to Europe, there is more potential than we are achieving at the moment, growth rates are low and unemployment is dragging behind. We have to pick up the speed of recovery,” Jeroen Dijsselbloem, Eurogroup President told reporters at the conference.

Officials have said they’re working on a package of possible measures for next month’s meeting.

IMF Managing Director Christine Lagarde warned policy makers that a new range of instruments to bolster financial stability known as macroprudential tools aren’t proven.