The ECB was balancing its wish to tackle higher inflation with a worsening economic situation because of problems like the Ukraine conflict, Holzmann told Austrian broadcaster ORF.

"The economy will grow less strongly, the forecasts point in this direction, that has made us somewhat cautious," said Holzmann, who heads the Austrian National Bank. "We will see in the autumn what the economic situation is. Then we can probably decide if we do another 0.5% or less."

The ECB was also keen to prevent expectations of higher inflation becoming entrenched among the general public, he added.

The ECB raised its benchmark deposit rate by 50 basis points to zero percent on Thursday, its first hike in 11 years as it joined global peers in jacking up borrowing costs.