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The coronavirus crisis is expected to leave the inflation durably below the 2% target, European Central Bank Governing Council member Francois Villeroy de Galhau said on Wednesday.

“Low inflation means interest rates should be kept low and liquidity abundant,” Villero added. “Nothing is excluded in principle from an intellectual debate about more radical policy measures. Such theories can only be envisaged if there is a major downside risk to inflation.”

Market reaction

The EUR/USD pair largely ignored these remarks and was last seen trading at 1.0864, erasing 0.23% on a daily basis.