(Bloomberg) -- Recent data on inflation and economic expansion reinforce arguments for additional interest-rate reductions by the European Central Bank, with two more this year about right, according to Governing Council member Yannis Stournaras.

“These data strengthen the case for further cuts a little bit,” the Greek central-bank chief said in an interview. “For the moment, two more rate cuts this year seems reasonable and consistent with our forecasts. We’re in highly restrictive territory and will continue to be even if we have two more cuts this year.”

After lowering borrowing costs by a quarter-point last month, the ECB is weighing whether inflation for the 20-nation euro zone is moderating sufficiently to allow further loosening. Without pre-committing, many say one or two more moves this year are possible — an outlook that chimes with money markets.

Consumer-price growth slowed to 2.5% from 2.6% in June. But there were warning signs within Eurostat’s release on Tuesday: Underlying price pressures failed to ease and services inflation remained at more than double the 2% goal.

Stournaras said the ECB “shouldn’t over-interpret” the services figures.

“Yes, it’s above 2% — but manufacturing goods are below 2%,” he said Wednesday in Sintra, Portugal. “And if we remove base effects, especially on energy, inflation is falling continuously for 12 months now. That is important.”

Such comments echo President Christine Lagarde, who said this week that the services gauge doesn’t have to hit 2% since its elevated readings can be offset by other components.

Addressing the turmoil in France, where the prospect of a radical change in power has sent shock waves through financial markets, Stournaras said any new government will stick to European Union fiscal rules.

“We had the Greek example and we had the recent UK budget mistake,” he said. “Why should they repeat these mistakes? If they don’t stick to the rules, this invites trouble. But I don’t expect that.”

Like other policymakers, Stournaras said he hasn’t seen anything to justify the ECB deploying its Transmission Protection Instrument — a tool to sooth markets in the case of unjustified and disorderly gyrations.

President Christine Lagarde repeated Tuesday that the ECB is “attentive” to the bond market, while declining to comment on France’s election. 

“We also know that markets have a role to play, a disciplinary role, and we will not destroy this role,” Stournaras said. “Even if we had to activate TPI at any point in time in the future, we would certainly stick to the European rules – no doubt about that.”

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