European Central Bank keeps interest rates on hold despite sluggish growth

"The European Central Bank maintained interest rates at 2% and 2.15% for the main and deposit rates, respectively, as the eurozone economy showed slow growth."

"Surveys indicated a modest rise in output across the eurozone despite stagnation in France and Germany, reflecting low unemployment and inflation."

"The potential for increased tariffs, particularly a looming 50% tariff on steel exports to the US, is causing hesitation in investment and new hiring by firms."

"Annual inflation in the eurozone rose to 2% in June from 1.9% in May, while US inflation and UK inflation also experienced increases."

The European Central Bank opted to hold interest rates at 2% and 2.15% during its July meeting, reflecting the eurozone's slow economic growth. Despite stagnation in the largest economies, France and Germany, private sector surveys reported a modest output increase. Although unemployment and inflation levels remain low, concerns over possible US tariffs, particularly a 50% steel tariff, are leading businesses to delay investments. In June, annual inflation in the eurozone rose to 2%, illustrating some inflationary pressures amid a generally stable economic environment.

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