Provided that inflation remains on its current trajectory over the next few months, the European Central Bank's next move should be an interest rate cut , ECB Governing Council member Mario Centeno said on Thursday.

"We don't know when the rate cut will happen, but we know the direction of policy... If that happens, a cycle of normalisation of interest rates close to their neutral level could begin," he told an event in Lisbon.

(Reporting by Sergio Goncalves, writing by Andrei Khalip)