European Central Bank Vice President Boris Vujcic stated that the ECB's decision to raise interest rates is "prudent," given that inflation is expected to remain elevated for a more extended period.

Speaking in London on Tuesday, he noted that most long-term expectations for future price increases remain aligned with the ECB's 2% target, and current wage growth does not show signs of triggering secondary effects.

"Overall inflation and core inflation will stay at high levels for longer—persisting until 2027," said Vujcic, who recently succeeded Luis de Guindos as the ECB's second-in-command earlier this month. "This essentially formed the underlying rationale for the interest rate policy action you saw at the last meeting."

Policymakers raised borrowing costs by 25 basis points on June 11 and are now weighing whether further tightening measures will be necessary in the coming months.

They are concerned that war-induced inflation, currently at 3.2%, is spreading beyond the energy sector. Simultaneously, they are reluctant to place unnecessary additional strain on an economy that is already slowing.

Vujcic described economic growth as "relatively resilient," as the 21-nation eurozone navigates another supply shock following Russia's invasion of Ukraine.

Earlier on Tuesday, ECB Chief Economist Philip Lane indicated that despite some progress toward a lasting peace agreement in the Middle East, the ECB still faces the risk that price growth will linger above the 2% target for "a considerable period," necessitating that policymakers remain focused on ensuring inflation stabilizes at the target level in the medium term.

ECB President Christine Lagarde stated on Monday that the ECB must maintain flexibility and be prepared to adjust its response as shocks evolve. However, she noted that, for now, officials "have not yet seen evidence of inflation expectations becoming unanchored or triggering second-round effects, which would warrant a more forceful policy response."

"If you look at wages, there is no sign of second-round effects," Vujcic said at a monetary policy forum hosted by Barclays and the Centre for Economic Policy Research (CEPR), adding that "compensation per employee is declining."

Regarding inflation expectations, he added, "In the medium to long term, they remain anchored."

Nonetheless, Vujcic affirmed that the ECB's rate hikes are "prudent in all circumstances because we expect inflation to remain above target for a longer period."