European Central Bank Governing Council member Bostjan Vasle stated on Tuesday that the ECB could continue to lower interest rates this year if everything evolves as expected.
The official also noted that the Eurozone's economy is developing in a relatively favourable way while its labour market remains very tight, causing pressures on wages. He stressed that the jobs market situation is very important for the ECB's next steps. "If wages won’t moderate as expected, then inflation will turn out to be more sticky," he added.
Regarding inflation, Vasle admitted that the policymakers are getting more certain that inflation is moving persistently toward the 2% goal but highlighted that the question is how fast this would happen.
In addition, Vasle said that the ECB's upcoming decisions should make sure that they do not lead to a policy stance that is structurally too loose over the medium term.