The European Central Bank left interest rates unchanged on Thursday and offered a modestly upbeat assessment of the euro zone economy, raising doubts among investors about further policy easing even while U.

Traders pared back bets on further ECB easing, and now see only a one-in-four chance of a rate cut in September. Alongside that, the euro erased losses to trade near $1.17, while euro-area bonds extended an earlier drop

In notes dated July 24, Goldman said it no longer expects the ECB to deliver a rate cut this year, while J.P. Morgan has pushed its rate-cut forecast to October from September previously. On Thursday, the ECB held policy rates unchanged at 2% after having cut interest rates eight times since June 2024.

The European Central Bank left interest rates unchanged on Thursday after cutting eight times in a year, biding its time while Brussels and Washington negotiate over trade. The ECB cut its policy rate to 2% last month,

The central bank left its key deposit rate at 2% after making eight cuts since last June.

In June, the ECB lowered its key deposit rate for an the eighth consecutive quarter-point reduction. President Donald Trump thinks the Fed should follow suit.

The dollar traded sideways versus the euro on Thursday after the European Central Bank held rates steady, and was confined to a tight range against the yen as prospects for higher Japanese rates offset worries about political risk after Sunday's elections.

The European Central Bank is leaving interest rates unchanged as it waits to see the impact of U.S. President Donald Trump’s tariffs on the economy before deciding whether to cut rates again.

There’s little reason for the European Central Bank to lower interest rates further unless the economy suffers a major blow, according to Governing Council member Martins Kazaks.

ECB President Christine Lagarde left economists and investors a little less certain as to when, or perhaps even whether, further easing will arrive.