European Central Bank Executive Board member Isabel Schnabel said in an interview conducted on May 16 that a rate cut in June will be likely if the inflation outlook and new data give the ECB's policymakers the confidence the 2% inflation target can be met sustainably.
The official, however, stressed that the decision won’t be made until the day the Governing Council meets.
Schnabel noted that the policymakers are satisfied with the noticeable decline in inflation but warned that they see that some elements of price pressures are proving persistent.
In addition, she cautioned against moving too quickly, noting that there is a risk of cutting interest rates too fast. "And we should definitely avoid that," the official stressed.