ECB’s Demarco: Exchange Rate ‘Not at a Level Where There Are Concerns’

2 July 2025

ECB’s Demarco: Exchange Rate ‘Not at a Level Where There Are Concerns’
Central Bank of Malta Acting Governor Alexander Demarco at the ECB Forum on Central Banking in Sintra, Portugal, 30 June 2025. Photo by the ECB.

By David Barwick – FRANKFURT (Econostream) – The exchange rate of the euro has not reached a point that is concerning, according to European Central Bank Governing Council member Alexander Demarco on Wednesday.

 

In an interview with Politico in Sintra, Portugal, Demarco said, ‘The appreciation which we had in the last couple of months — it certainly also helps to keep inflation down through prices of imports.’

 

 ‘It's something that we need to monitor, mostly, perhaps, the speed of the appreciation’, he continued. ‘But we’re still not at a level where there are concerns.’

 

Demarco agreed that a July cut was not necessary, arguing that a pause would ‘hold the powder a bit dry’.

 

‘Because of the high uncertainty you can always have some unexpected shock cropping up’, he said.