(Bloomberg) -- The European Central Bank isn’t done raising borrowing costs, though it doesn’t have a lot further to go, Executive Board member Fabio Panetta told Le Monde.

“I think now is not the time to go too fast, because we have already come a long way,” he said. “We have not yet reached the final destination, but we are not far from it.”

Policymakers have already tightened policy by 375 basis points. Facing inflation rates that have slowed, but still are uncomfortably strong, officials are expected to increase interest rates again in quarter-point moves this month and in July.  

“Inflation is too high, but there is no reason to worry,” said Panetta, who is among the Governing Council’s more dovish members. “Our monetary tightening will be felt in the coming months. We cannot rule out the possibility that domestic demand will remain weak and that this will translate into prolonged sluggishness in economic activity, or even a technical recession in the euro zone.”

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