(Bloomberg) -- European Central Bank Executive Board member Luis de Guindos reiterated that a continuation in the downward trend in inflation should allow interest rates to be lowered — backing expectations for a cut in June.

Should officials’ confidence in meeting the 2% target for consumer-price growth increase, “it would be appropriate to reduce the current level of monetary policy restriction,” Guindos told European Union lawmakers Thursday in Brussels.

“Inflation has fallen further this year and is expected to continue declining in the medium term, but at a slower pace,” he said, adding that the ECB isn’t “pre-committing to a particular rate path.”

The remarks chime with many of Guindos’s colleagues, who’ve been signaling a rate cut when the Governing Council next convenes to set policy in seven weeks. Geopolitical concerns, though, are making some policymakers reluctant to discuss further moves during the rest of year.

Nevertheless, less restrictive monetary policy would be welcomed by many euro-zone governments, whose economies have been struggling to grow. Recent data have pointed to a mild recovery in the second half of 2024, with ECB President Christine Lagarde saying the region is now “clearly seeing signs of recovery.”

“This year, economic indicators suggest that activity has got off to a weak start and will recover only gradually,” Guindos said. “Consumer spending is set to remain sluggish in the near term but should strengthen as real disposable income continues to recover. Private investment is expected to show continued weakness in the period ahead before the impact of weak final demand and tight financing conditions starts to fade.”

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