The ECB will need more convincing to cut rates more than twice in 2024

ECB Governing Council member Pierre Wunsch noted late Monday that it would take a notable shift in economic data to convince the ECB to deliver more than two additional interest rate cuts in 2024.

the main points

We will need to be persuaded to cut production more than twice this year.

A transmission protector must be used if the situation is unjustified or unregulated.

The ECB will not be able to solve financial problems using a trade finance instrument.

Cutting interest rates in July is an option in theory, but in practice we must be careful.

Market pricing of the ECB’s interest rate path appears reasonable.