Stocks in Europe climbed to a two-month high as European Central Bank President Mario Draghi reiterated his commitment to raising inflation as fast as possible, and China cut interest rates. The Stoxx Europe 600 Index added 2.1 percent to 345.24 at the close of trading, snapping a two-day losing streak. The equity benchmark has advanced 2.9 percent this week amid investor speculation of further ECB stimulus. Stocks extended gains today after China cut interest rates, with miners leading. “There are two key drivers, with the first being Draghi saying inflation needs to be boosted as soon as possible, which makes quantitative easing more likely,” Steen Jakobsen, chief investment officer at Saxo Bank A/S in Copenhagen, said in a phone interview. “The decision of the Chinese central bank to cut interest rates shows that China is also reacting to the slowdown. This makes the market perceive a perfect risk-on day for Friday.” Speaking at the European Banking Congress in Frankfurt, Draghi said the ECB must drive inflation higher quickly, and it will widen its asset-purchase program if necessary. Any new action would follow measures including interest-rate cuts, long-term bank loans and covered-bond purchases, with buying of asset-backed securities said to have started today. Draghi has also declined to rule out buying government bonds. Photographer: Martin Leissl/Bloomberg European Central Bank President Mario Draghi has previously declined to rule out buying government bonds. He said this month that ECB staff have been told to study ways to boost an economy that grew just 0.2 percent last quarter and where inflation of 0.4 percent is persistently below the ECB’s goal. bloomberg