The European Central Bank (ECB) should be ready to change its monetary policy as inflation data start to meet targets, a member of the bank's executive board told CNBC on Monday.
Sabine Lautenschläger, member of the ECB's executive board, said the current loose monetary stance is necessary given current economic data, but added that she's hopeful that the numbers will improve by the next scheduled meeting in June.
"We should prepare for a change in the policy and as soon as the data is stable and we have a sustainable path towards our objective of price stability then we are well prepared to do (it)," Lautenschläger told CNBC.
Inflation, which is a key factor determining ECB policy, has improved over the last few months but core figures are still below the bank's target.
However, the latest headline inflation figures – which is a measure of total inflation and includes commodities like food - for the euro zone reached 2 percent in February, mainly driven by energy prices. The bank's target is to keep inflation close but below the 2 percent threshold.
Nonetheless, in his last address to the media, ECB President Mario Draghi said that underlying inflationary pressures across the region are still too weak and thus it is too early to dial back on monetary stimulus.