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The euro area economy has recovered sharply from the trough seen in April, said the European Central Bank (ECB) policymaker and Irish Central Bank Governor Gabriel Makhlouf in an interview with CNBC on Tuesday.

Additional quotes

“Inflation will return, but very high inflation unlikely because we are determined to deliver on our mandate.”

“Average inflation targeting is one of the options we should look at.”

Separately, the ECB policymaker and Bank of Spain governor Pablo Hernandez de Cos called for a broad political and social consensus to cope with the economic fallout from the COVID-19 disease amid a political spat.

EUR/USD off the lows

EUR/USD has reversed a quick drop to 1.1766 although remains below the 1.1800 level, still digesting the comments from the ECB policymakers. The spot trades flat at 1.1783, as we write.

  • ECB’s Lagarde: Don’t see a complete economic recovery until the end of 2022