The European Central Bank is leaving interest rates unchanged as it waits to see how big a blow U.S. President Donald Trump’s tariffs will inflict on the economy before deciding whether to cut rates a

The European Central Bank will likely hold off on making another interest rate cut Thursday, choosing to wait until it can measure the size of any economic blow from higher U.S. tariffs. The ECB has already cut rates eight times since June of last year and President Christine Lagarde said after the last policy meeting June 5 that the central bank is “getting to the end of a monetary policy cycle.

The European Central Bank left its main interest rate unchanged at 2% as expected on Thursday, taking a break after a year of policy easing to wait for clarity over Europe's future trade relations with the United States.

The recent inflation rise to 2.7% in June, driven by consumer prices, signals potential financial strain. As tariffs take effect, consumers may face increased costs, impacting their purchasing power.

President Donald Trump’s vows to roll out punishing new tariffs on Aug. 1 have barely made a ripple with investors who are convinced he’ll once again back down. But at the White House, officials insist they’re serious this time.

U.S. President Donald Trump has created a lot of leverage on trade with his letters on tariff rates, U.S. Treasury Secretary Scott Bessent told Bloomberg Television in an interview on Wednesday.