ECB holds rates at 2%, pauses easing cycle

The European Central Bank (ECB) held interest rates steady at 2% on Thursday, pausing its year-long policy easing cycle as it waits for clarity on Europe's future trade ties with the United States.

With inflation now back at the bank's 2% target and interest rates halved since June 2024, monetary policymakers said there was no urgency to adjust further.

They offered no hints on when the next move might come.

While the European Central Bank has managed to bring down consumer prices that surged after the pandemic and Russia’s 2022 invasion of Ukraine, officials now face a fresh challenge — rising US tariffs under President Donald Trump.

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