Any future ECB rate cuts would need to be "gradual", said Mr. Kazakis, the ECB's governing board member. "While inflation has fallen to fairly low levels, victory is yet to come," he said in a blog. "Domestic price pressures remain high. The labour market is tight and unemployment is low, which is putting upward pressure on wages." He said: "Further rate cuts should therefore be gradual, keeping a close eye on the dynamics of wage growth, productivity growth and corporate profit margins." We will make future decisions based on the latest data and assess the situation meeting by meeting. " The day before Mr. Kazakis spoke, the European Central Bank delivered on its promise to cut interest rates, but also said it would take longer for inflation to reach 2 per cent, raising questions about the next direction of policy. Officials all but ruled out a second rate cut in July, according to people familiar with the matter, and some questioned the wisdom of a rate cut at the September meeting.