European Central Bank (ECB) Governing Council member Gabriel Makhlouf said that the bank has entered the last phase of its historic cycle of interest rate increases.

He added, today, Saturday, in Dubrovnik, Croatia: Given our current inflation expectations; It is likely that we will be close to (the top of the ladder).. So; It is now appropriate to slow the pace of benchmark interest rate steps.

This month, the European Central Bank shifted to a slower pace of raising borrowing costs, raising 25 basis points. This is the lowest lift in the 375 basis point tightening cycle, which began last July. There are likely to be at least two more moves of the same magnitude as those in May, over the next June and July.

Some policymakers are pushing for more rate hikes in September, although Makhlouf, who heads Ireland's central bank, is not sticking to that line.

He said monetary policy correction from that point should remain data dependent given the prevailing uncertainty, and Makhlouf reiterated the ECB's commitment to returning inflation to its 2% target over the medium term.