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Although the impact of the coronavirus outbreak can’t be measured yet, an epidemic in Germany would have direct economic consequences, said Jens Weidmann, European Central Bank Governing Council member and Bundesbank President.

“The economic growth in Germany could be somewhat lower than estimated in December,” Weidmann added.

Regarding the ECB’s policy outlook, “the ECB must not lose sight of the exit from loose monetary policy. Our current inflation target is understandable, forward-looking and realistic,” Weidmann argued.

Market reaction

These comments were largely ignored by the market participants and the EUR/USD pair was last seen trading at 1.1035, up 0.33% on a daily basis.