ECB policymaker Mārtiņš Kazāks said inflation expectations remain anchored close to the ECB's target, a sign that households, businesses, and financial markets continue to have confidence in the central bank's commitment to price stability. He also highlighted that wage growth is gradually slowing, suggesting that one of the key domestic drivers of inflationary pressure may continue to moderate in the coming quarters. The ECB has repeatedly pointed to wage dynamics as a key factor in assessing whether inflation can settle sustainably around target.At the same time, he acknowledged the uncertainty surrounding the economic outlook, arguing that forward guidance has become counterproductive in the current environment. With geopolitical risks, energy markets, and global growth prospects all subject to rapid change, he suggested that policymakers should retain maximum flexibility rather than pre-commit to a specific policy path.Kazāks said policymakers will make their next decision in September based on incoming economic data, while the market has already made up his mind by pricing a 94% probability of a rate hike.Notably, Kazāks indicated that there are both pros and cons to raising interest rates further, which sounds like there's not much appetite for more rate hikes. While additional tightening could help ensure inflation returns fully to target, it could also weigh on economic growth. Overall, the tone is more cautious compared to his more hawkish remarks in the prior months. This article was written by Giuseppe Dellamotta at investinglive.com.