(Bloomberg) -- The European Central Bank is facing tougher challenges than the US Federal Reserve, according to Governing Council member Yannis Stournaras, who sees a first rate cut in June.

“The ECB has to deal with more difficult problems than the Fed,” the Greek central bank chief said Monday, citing fragmentation in the euro area’s banking system and the legacy of the region’s sovereign debt crisis. 

Turning to monetary policy, he reaffirmed that he favors small steps of 25 basis points and that the ECB should start in June — but not later, saying that “realism and gradualism need to guide our actions.”

Most ECB officials have been guiding toward June as the starting point to begin unwinding their historic bout of monetary tightening. While a minority wants loosening to start sooner, their more cautious colleagues prefer waiting for crucial wage data due in the coming months so be sure inflation is headed back to the 2% target.

“There has been substantial progress in reducing inflation in the euro area,” Stournaras said in Liverpool, UK, adding that consumer-price growth is “very likely” to be near the ECB’s goal in autumn. “This progress has been achieved without a recession or financial instability suggestion a soft landing.”

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