"ECB holds interest rates steady despite weak economic growth"

The European Central Bank left interest rates unchanged during its July meeting, as data indicated the eurozone economy continued to expand at a slow rate.

The Frankfurt-based institution, in a move widely anticipated as a temporary stop before potential reductions later this year, opted against lowering borrowing costs, keeping the main interest rate steady at 2% and the deposit rate at 2.15%.

This decision followed reports from within the 20-nation currency union, showing a slight increase in private-sector activity despite prolonged stagnation in Germany and France, the bloc’s two largest economies.

Unemployment remains at historically low levels across much of the eurozone, while inflation stays subdued, providing a stable foundation for economic progress.

Nonetheless, concerns over escalating tariffs from the U.S., including potential 50% duties on steel exports, have led businesses to delay investment and hiring decisions.

Annual inflation in the eurozone reached 2% in June, up from 1.9% in May. Meanwhile, U.S. inflation climbed to 2.7% in June from 2.4% the previous month, and the UK saw inflation rise to 3.6% in the same period.