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The European Central Bank (ECB) held interest rates steady at 2% on Thursday amid significant economic uncertainty stemming from ongoing US-EU trade negotiations. While inflation met the 2% target last month, the ECB cited exceptional uncertainty, particularly concerning potential US tariffs on EU imports. ECB officials suggest their inflation-fighting work is nearing completion, but remain cautious, awaiting updated economic forecasts in September before making further rate adjustments. A potential US-EU trade deal could influence future rate decisions.

Prepared by Christopher Adams and reviewed by editorial team.