European Central Bank Vice President Boris Vujcic stated that the central bank's decision to raise interest rates was "sound," considering that inflation is expected to remain elevated for a longer period.

Speaking in London on Tuesday, he added that most long-term inflation expectations remain aligned with the ECB's 2% target, and current wage growth does not show any signs of triggering a wage-price spiral.

"Both headline and core inflation will remain elevated for longer—until 2027," said Vujcic, who succeeded Luis de Guindos as ECB Vice President earlier this month. "This is essentially the rationale for the interest rate action you saw at the last meeting."

The European Central Bank raised its key interest rates by 25 basis points on June 11 and is currently assessing whether further policy tightening will be necessary in the coming months.