"We must remain alert to the longer lags in the transmission of monetary policy to growth and inflation. It will be important to assess how monetary policy decisions to date are working through the economy when calibrating further decisions," Makhlouf said in a speech.
The Irish central bank chief added that the ECB "must remain steadfast and ready to act as required" to ensure inflation returns to target over the medium-term, and that rates will need to be kept at a restrictive level to dampen demand.
(Reporting by Padraic Halpin; Editing by Alexander Smith)
