ECB board member Yves Mersch unveils a new 10-euro banknote at ECB headquarters in Frankfurt, Germany on January 13, 2014
On an annual basis, the rate of inflation slowed to 0.7 percent last month from 0.8 percent in December, way below the ECB's target of just under 2.0 percent.
The slowdown fuelled concern that the single currency area could soon slip into a deflationary spiral -- a vicious circle of falling prices.
But while Draghi acknowledged such fears, he insisted that the region was not experiencing deflation.
"Is there deflation? The answer is 'No'," Draghi told the regular post-meeting news conference.
Nevertheless, the ECB was keeping a close eye on price developments and would act if necessary, Draghi said.
"We are ready to consider all available instruments. Overall, we remain firmly determined to maintain the high degree of monetary accommodation and to take further decisive action if required," he said.
The ECB already took action in November when it pared back its interest rates to their current ultra-low levels, Draghi said.
And the central bank "continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time," he said.
But the signs all suggested that the euro area was set to recover, Draghi insisted.
Eric Piermont, AFP
Mario Draghi at a promotional event at the World Economic Forum in Davos on January 23, 2014
'Postponed, not abandoned'
"The ECB kept its powder dry at today's meeting," said ING DiBa economist Carsten Brzeski.
"As expected, it must have been a very close call. (But) president Draghi stressed the ECB's determination to act again if money market tensions were to increase and/or the medium-term inflation outlook worsen. Postponed is definitely not abandoned," Brzeski said.
Brzeski found it noteworthy that "for the first time in a long while, (Draghi) started by stressing the recovery and only then moved to inflation developments. Recovery hopes won from deflation fears," the expert said.
Berenberg Bank economist Christian Schulz felt that while the ECB had not taken any action this week, "the door to further steps remains wide open as headline inflation stays weak".
"The March meeting in particular, when the ECB's inflation forecast for 2016 will be published, could be crucial," Schulz said.
IHS Global Insight economist Howard Archer agreed.
"While the ECB held off from taking further stimulative action, both its statement and comments by president Draghi very much kept the door open to future action, and as soon as March," Archer said.
Tom Rogers at EY Eurozone Forecast said the decision by the ECB not to cut rates further "was to be expected, in light of the fact that the recovery is progressing broadly in line with expectations, and there are tentative signs of stabilisation in bank credit to firms."
However, the publication next month of the ECB's staff forecasts "will shed more light on the ECB's view on the risk of deflation," Rogers said.
"Downward revisions to inflation forecasts ... would no doubt reopen the debate about further monetary easing," Rogers said.