ECB's Demarco says inflation consistently below 2% could need cut; "not end of world" if EUR/USD reaches 1.20-1.25

ECB's Demarco says inflation consistently below 2% could need cut; "not end of world" if EUR/USD reaches 1.20-1.25.

Demarco's comments suggest a more dovish approach from the ECB if inflation remains persistently below 2%, indicating potential rate cuts could be on the table. His reassurance regarding the EUR/USD reaching 1.20-1.25 may reflect a willingness to tolerate some currency weakness, potentially impacting euro-denominated assets and rates expectations. This could signal a shift in how the ECB navigates inflation and currency dynamics moving forward.