Recent data on inflation and economic expansion bolster the case for additional interest rate cuts by the European Central Bank, with two more this year, Bank of Greece Governor and Board member Giannis Stournaras told Bloomberg.

“These figures slightly strengthen the case for further reductions,” said the head of the Greek central bank in an interview. “For now, two more rate cuts this year seem reasonable and consistent with our forecasts. We are in extremely restrictive territory and will continue to be even if we have two more cuts this year.”

Following the 0.25% cut in borrowing costs, the ECB is weighing whether inflation for the eurozone moderates enough to allow for further easing. With no prior commitment, several observers argue that one or two more moves this year are possible.

Inflation slowed to 2.5% from 2.6% in June. However, there were warning signs in Eurostat’s release on Tuesday: Underlying price pressures failed to ease and services inflation remained at more than double the 2% target.

Mr. Stournaras said that the ECB “must not over-interpret” the services data.

“Yes, it’s above 2% – but manufactured goods are below 2%,” he said on Wednesday in Sintra, Portugal. “And if we strip out the base effects, especially in energy, inflation has been falling steadily for 12 months. This is important”.

Such comments echo President Christine Lagarde, who said this week that the services index does not need to reach 2 percent as its increased readings can be offset by other components.

Referring to the turmoil in France, where the prospect of a radical change in power has sent shockwaves through financial markets, Mr Stournaras said any new government would adhere to European Union fiscal rules.