(Bloomberg) -- European Central Bank Governing Council member Bostjan Vasle said next month is probably the appropriate moment to begin lowering interest rates and that he’s keeping an open mind on what to do after that.

While labor markets remain “very strong,” there are no excessive wage dynamics and inflation readings have met expectations, the Slovenian official said in Friday an interview. He said he’s “comfortable” with the ECB’s current data-dependent approach.

“Unless we’ll get a big surprise, June is a reasonable, realistic moment to cut interest rates, but I can’t say what will happen after that,”  Vasle said in Portoroz, Slovenia. “I’m open to different possibilities but I want to wait for more information.”

The ECB is set to lower interest rates on June 6 as inflation approaches 2%, with officials appearing to lean toward further cuts each quarter, when economic projections are updated. Investors see three reductions by year-end, though policymakers stress the potential for shocks — particularly geopolitical — that could upend such expectations.

Executive Board member Isabel Schnabel gave the clearest signal yet that the ECB is unlikely to follow June’s cut with another in July, telling Japan’s Nikkei in comments published Friday that the second move “does not seem warranted.”

In determining the best course of action, the focus is very much on wage growth, which remains strong. While recent data suggest increases in negotiated pay failed to slow significantly in the first quarter, ECB Vice President Luis de Guindos has said he sees pay gains moderating. Data are due next week.

Elsewhere, there’s the Federal Reserve, which has indicated that borrowing costs will stay high for longer — a situation that could stoke inflation in Europe by denting the euro, or prompt the ECB to ease more aggressively to offset tighter US financing conditions.

“I’m really attentive to what’s happening in the US,” Vasle said. “While we have a mandate to respond to developments in Europe, we don’t live in isolation.”

The clouds over the euro-area economy are, at least, clearing. The three months of 2024 saw the bloc exit recession with growth that surpassed estimates. As confidence improves among consumers, businesses and investors, the European Commission is forecasting expansion of 0.8% for 2024.

“The worst quarters for the economy are over,” Vasle said. “It looks like growth will be better this year than we had expected.”

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