Portuguese ECB Governing Council member Mario Centeno welcomed the return of Eurozone inflation to the 2% target, calling it “very good news.” However, he also stressed that the ECB remains focused on assessing incoming data.

Centeno told Bloomberg TV that the ECB is “monitoring all possible numbers” and assessing various aspects of the Eurozone’s 20-member economy. “The current situation doesn’t mean that we need to rush into more interest-rate reductions,” he said. “We need to see data, we need to see the developments.”

Finnish ECB Governing Council member Olli Rehn warned that the Eurozone faces renewed risks of inflation falling below the 2% target as global uncertainties intensify. While acknowledging that risks to the outlook exist on both sides, Rehn said the downside appears more pressing. “The risk of staying below target is greater in my view, especially as our projections see price growth under target for 18 months,” he noted.

Rehn pointed to a trio of disinflationary forces — a strong Euro, lower energy prices, and rising tariffs — which he argued are weighing on both inflation and growth. “We need to be mindful of the risk of inflation staying persistently below 2%,” he said.

Belgian ECB Governing Council member Pierre Wunsch said the central bank may need a “mildly supportive” stance, especially if Eurozone recovery continues to lag. In an interview with Reuters, Wunsch noted “If the recovery is delayed — and it has been delayed a few times — and output is below potential, then being supportive is rational,” he said.

Wunsch highlighted several disinflationary forces at play, including lower energy prices, the strength of Euro, subdued wage growth, and the lack of tariff retaliation. He also flagged cheap Chinese imports as a contributing factor to weakening price pressures. “All these factors combined suggest that the upside risk is limited and the overall risk is to the downside,” he added.

With markets pricing in one final 25 basis point cut later this year, bringing the deposit rate to 1.75%, Wunsch said he was not uncomfortable with that view. “I don’t disagree with market pricing for interest rates,” he noted.

At the ECB’s annual forum in Sintra, policymakers reinforced that it’s is nearing the end of its easing cycle, even though further rate cut cannot be ruled out.

Chief Economist Philip Lane emphasized that the “last cycle” of battling post-pandemic inflation is over, having brought price growth down from 10% to near the 2% target. Still, he clarified that being “done” with the previous cycle does not rule out additional moves if circumstances change, particularly as the eurozone faces lingering uncertainty from global trade tensions and weak growth.

Belgian central bank chief Pierre Wunsch echoed the sentiment, saying the “job is mostly done” on inflation but that risks are now tilted to the downside. Wunsch added that ““if we have to move more it probably will be to the downside, a further cut.”

Latvian central banker Martins Kazaks added that any future moves would likely be small and designed as fine-tuning or “insurance cuts.” He cited Euro’s recent appreciation as a potential drag on inflation and exports, reinforcing the case for a cautious bias toward easing.

Vice President Luis de Guindos said that while the current EUR/USD exchange rate—hovering near 1.17—is not concerning, a rapid move beyond 1.20 would begin to pose challenges for inflation and competitiveness. “But 1.20 is perfectly acceptable.”

Lithuania’s Gediminas Šimkus also leaned dovish, stating that any next move would “be down,” though he remained cautious about timing. He said September might be too early to decide. Simkus added: “I believe a move, if any, is more likely towards the end of the year.”