Madis Muller, a member of the European Central Bank's Council, said that the European Central Bank should not pre-commit to a certain outcome before the next meeting.
"I think it's important that if the European Central Bank's Council's next meeting is in September, we don't make too many commitments ahead of time," said the Estonian central bank governor on Friday. He added that it was difficult to say how many interest rate cuts would be made this year.
In an interview with local radio station Aripaev, Muller admitted that "if you look at the expectations that the market is digesting, there is indeed an expectation of at least one more interest rate cut, but I myself do not comment."
"We know that there is still volatility in consumer price growth," Muller said. He emphasized that the inflation rate in the services sector is around 4% and wage growth is 5%, "which does not match the 2% target."
However, he said, "I believe that inflation will continue to show a decelerating trend in the next 12 months, and that is the reality."