Mr. Nagel, the European Central Bank's governing body, said on Wednesday that the central bank could cut interest rates again next week but that easing should be gradual and cautious. "Given that the process of falling inflation has largely proceeded as currently expected, at this stage I would not object if we continued to lower the policy rate," Mr. Nagel said on Wednesday. "But I will reserve my final judgment and will make my decision after reviewing the new macroeconomic forecasts for December and considering the risks around the baseline."