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

The European Central Bank (ECB) is most likely to cut rates in September or December, while it’s expected to pause its rate cut cycle in July. Uncertainties in the eurozone because of US tariffs are expected to prompt the ECB to pause cutting rates for now and adopt a wait-and-see approach.

With inflation now back at the ECB's 2% goal and expected to stay there, policymakers chose to stay put on Thursday, just as trade talks between the EU and Trump's administration appeared to be in their final stretch.