The European Central Bank is "nearly done" cutting interest rates if inflation settles at 2% as expected, ECB policymaker Boris Vujcic said on Saturday.

"The ECB's 2% inflation target has essentially been achieved," Estonian policymaker Madis Müller said. "The expected economic growth in the next couple of years is also likely to be quite moderate, which means that there is no reason to worry too much about price pressure related to the heating up of the economic environment."

The European Central Bank on Thursday delivered a widely expected quarter-point rate cut, lowering its deposit facility rate to 2%.

Europe has succeeded in bringing inflation under control after a surge driven by the end of the Covid-19 pandemic and Russia’s invasion of Ukraine, the head of France’s central bank said.

The pan-European STOXX 600 index edged 0.2% higher by 0704 GMT, extending gains from the previous session after Germany's approval of a tax relief package lifted investor sentiment. Investors remained cautious ahead of the ECB meeting later in the day, where a 25-basis-point interest rate cut is widely expected.

The European Central Bank (ECB) has made significant strides in 2025 to bolster financial stability, advance the digital euro initiative.

The Council of the European Central Bank could put investors in the mood for a looser interest rate policy. The inflation target is within sight, but tariff uncertainties remain high.

Slovak central bank governor and European Central Bank policymaker Peter Kazimir is not the right candidate to get another six-year term and the country's main ruling party will not back him, Prime Minister Robert Fico said.