By Francesco Canepa

DUBROVNIK, Croatia (Reuters) -The European Central Bank has made “great progress” in taming inflation but it should watch out for fresh price hikes caused by U.S. tariffs, ECB policymaker Isabel Schnabel said on Saturday.

The ECB cut interest rates on Thursday for the eighth time in the past year and signalled at least a policy pause next month as it waits for the growth and inflation outlook to become clearer.

Schnabel, the most prominent voice in the hawkish ECB camp that favours higher interest rates, celebrated inflation returning to the bank’s 2% target.

“I think we’ve made great progress, and as you know, our most recent inflation number was even below 2%,” Schnabel told a conference in Dubrovnik. “Of course, that was to a very large extent driven by energy, b

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