(Bloomberg) -- The European Central Bank won’t have enough information to decide on interest-rate cuts until June — even as inflation seems to be on track to reach the 2% target this year, according to Governing Council member Yannis Stournaras.

Already moving in April is an option only if data surprise, Stournaras said in an interview in Ghent, Belgium, where he’s attending a meeting of European finance ministers and central bankers. Policymakers will make absolutely sure they don’t act prematurely and jeopardize the progress they’ve achieved to date, he added.

“The recent set of data suggests we will reach 2% in the autumn of this year,” said Stournaras, who also heads the Greek central bank. “The latest deceleration in wages gives hope that we are on track. But we won’t have enough information to decide on rate cuts before the end of the second quarter — so June.”

With the ECB’s next policy meeting less than two weeks away, officials have become more vocal on where they see rates headed this year. For the most part, the debate is focusing on whether the first cut will come in April or June — though some have also expressed preferences for earlier or later action.

Little attention has been given to how quickly borrowing costs will ease and where they’ll settle in the longer term. Stournaras argued in favor of a gradual approach.

“Moving toward neutral will take time,” he said. “There’s too much uncertainty in the system to move in bigger steps than 25 basis points. I would expect us to reach neutral levels — around 2% — toward the end of next year.”

Stournaras also said:

  • “Inflation will be approaching our target much earlier than thought.”
  • “April is an option if we receive the right kind of data, March definitely is not. We won’t take the risk of cutting rates until we can be absolutely sure we’re on track to meet our target.”
  • “Wage growth above 4% is worrying. But companies use growth in total costs to determine margins, and that’s lower.”
  • “I’m not sure the economy will be able to grow 0.8% this year as previously projected. It probably won’t.”

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