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.

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.

Keeping European Central Bank interest rates unchanged this week was appropriate after inflation reached its 2% target and uncertainty around US tariffs remained high, according to Governing Council member Joachim Nagel.

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 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.

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

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.