(Bloomberg) -- The European Central Bank has entered a new monetary-policy phase where officials can focus on monitoring the economy rather than actively intervening to change its course, according to Governing Council member Martins Kazaks.

With inflation at the 2% target and recent data not signaling a marked shift in the outlook since June’s quarterly projections, there’s currently no need to cut interest rates further, Kazaks said in an interview in Jackson Hole, Wyoming, where he’s attending the Federal Reserve’s annual symposium.

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Following eight reductions that took the deposit rate to 2%, policymakers held fire on further easing in July. Many have indicated since that they’re leaning toward another hold when the Governing Council gathers next month.

“We’ve seen good news, we’ve seen bad news, but not sufficiently big news to lead to a rethink of what we would need to do,” Kazaks said. “I think we are still in a good place.”

While a trade deal between the European Union and the US has reduced some of the uncertainty that’s kept businesses from investing, tariffs of 15% on most exports will still weigh on growth. There’s also some evidence that China is diverting cheap goods to the region, adding further downside risks.

Surveys, however, point to a revival in manufacturing — a sector that’s struggled to expand for more than three years. Wages have slowed as expected, underpinning confidence that inflation will settle at 2% in the medium term.

“We are at the target, we have delivered — now we need to ensure that we remain at around target,” Kazaks said. “We know that at the beginning of next year, we will somewhat undershoot but of course the question is, how it’ll start to rebound.”

In June, the ECB predicted inflation would ease to 1.6% in 2026, before climbing back up to 2% the following year. Fresh forecasts are due in September, and will be key for policymakers’ decision-making on rates.

Traders don’t anticipate another reduction this year, and Kazaks argued that their view is “very much in line with the baseline.”

“Markets understand us,” he said.

Part of his reasoning that the ECB will probably refrain from cutting next month is that one more reduction won’t significantly change Europe’s outlook.

“Another 25 basis-point cut won’t shift the economy massively,” Kazaks said. “It’s more like an insurance story in my view.”

That’s not seen as necessary right now. In a separate interview, Kazak’s Finnish colleague, Olli Rehn, argued that there’s no reason for the ECB to act before risks to growth and inflation materialize. “Any ‘insurance cut’ just for its own sake wouldn’t be necessary,” he said.

Kazaks stressed that most risks officials highlighted in June still exist.

“I don’t see, at least for the time being, that there is some kind of urgency for us to catch up on something,” he said. But “we remain data dependent,” and “if we see that there is a need to move, then we move.”

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