The European Central Bank (ECB) decided to keep interest rates unchanged on Thursday, as economic uncertainty persists following shifts in former U.S. President Donald Trump’s tariff agenda. The last time the central bank reduced borrowing costs was in June, which brought rates down from their peak of 4% reached last year. n nInflation in the eurozone currently hovers around 2% over the medium term, and the Governing Council’s assessment of inflation expectations has remained largely stable. The ECB emphasized that its future monetary policy decisions will be guided by a data-dependent, meeting-by-meeting approach, without pre-committing to any specific rate path. n nThe institution provided limited signals about the future direction of monetary policy, reflecting the complex global economic environment. Despite inflation aligning closely with the ECB’s 2% target in recent months, broader international developments continue to cloud the outlook. Notably, the European Union finalized a trade agreement with the United States, under which a comprehensive 15% tariff on EU exports to the U.S. is set to take effect in July, with further details of the framework emerging last month. Certain sectors, including pharmaceuticals, have been specifically addressed under the new arrangement. n
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— News Original —nThe European Central Bank keeps interest rates steady as economic uncertainty continuesnThe European Central Bank kept interest rates unchanged on Thursday amid ongoing economic uncertainty following the tariff agenda of former U.S. President Donald Trump. n nThe central bank’s last rate cut was in June, bringing borrowing costs down from last year’s record high of 4%. n nInflation currently stands at around 2% in the medium term, and the board’s assessment of inflation expectations has not changed significantly. n nThe central bank said it would follow a data-dependent, meeting-by-meeting approach without pre-committing to a specific interest rate path. n nThe European Central Bank provided few indications of the future direction of interest rates. n nThe European Central Bank faces global economic uncertainty, despite inflation in the eurozone hovering around the central bank’s 2% target in recent months, and the European Union concluded a trade deal with the United States. n nTransatlantic partners agreed on a comprehensive 15% tariff on EU exports to the United States in July, with more details on the framework emerging last month. Some questions were raised regarding major European sectors such as pharmaceuticals.