European Central Bank (ECB) Governing Council member Pierre Wunsch noted late on Monday that it would take a notable turn in economic data to convince the ECB to deliver more than two more rate trims in 2024.

Key highlights

We would need convincing to cut more than twice this year.

The Transmission Protection Instrument is to be used if the situation is unwarranted or disorderly.

The ECB won't solve fiscal problems with the use of TPI.

A July cut is an option in theory, in practice we must be cautious.

Market pricing on the ECB rate path looks reasonable.