European Central Bank Governing Council member Klaas Knot warned on Tuesday that an inappropriate fiscal stance could hamper the efficacy of monetary policy. He added that a more restrictive fiscal policy would have been desirable.
The official also said the ECB's policymakers will wait for data to decide on the September rate-cut view.
In addition, Knot noted that as long as the disinflation path converges to 2% before the end of 2025, then he is comfortable with gradual policy easing.