The European Central Bank (ECB) maintained its key interest rate at 2% on Thursday, halting a year-long series of cuts. This decision follows a period of easing monetary policy implemented since June 2024, which halved interest rates. The ECB cited inflation returning to its 2% target as the reason for the pause. The bank offered no indication of the timing of future rate adjustments.

The ECB's decision comes amidst rising trade tensions with the United States under the Trump administration, which has introduced new tariffs. While the ECB successfully lowered consumer prices that increased after the pandemic and the 2022 Russian invasion of Ukraine, these new tariffs present a fresh challenge.

Impact Statement: The ECB's decision to hold interest rates could impact future economic growth in the Eurozone, depending on the evolution of trade relations with the United States.