European Central Bank holds interest rates as tariff turmoil keeps policymakers on edge

The European Central Bank on Thursday kept interest rates steady amid major economic uncertainty, as the European Union scrambles to negotiate a trade agreement with the U.S. before the end of the month.

The ECB has cut interest rates at each of its four meetings so far this year, taking its key deposit facility from 3% in January to 2% in June. Last year it reduced rates from a record high of 4%.

“The environment remains exceptionally uncertain, especially because of trade disputes,” the ECB said in a statement, adding that its inflation and growth outlook from June remained supported by recent data.