European Central Bank Governing Council member Fabio Panetta said on Friday that the Eurozone's May inflation report released earlier today is neither good nor bad, noting that the CPI figures were still in line with the ECB's forecasts. He added that inflation is expected to ease further in the next few quarters.
The official also stated that it will be appropriate to ease monetary conditions over the coming months if the incoming data is consistent with the ECB's current projections. However, he admitted that the monetary policy stance will remain tight even after several cuts in the ECB key interest rates.