ECB keeps rates at 2% as eurozone growth tops forecasts

The European Central Bank kept its benchmark interest rate at 2% on Thursday, choosing to wait after eurozone growth came in better than economists had expected in the second quarter.

The decision suggests policymakers see enough resilience in the bloc’s economy to avoid another move for now, even as inflation, borrowing costs and broader global risks continue to shape the outlook.

By holding steady, the ECB signaled confidence in the current policy stance while leaving room to respond later if growth weakens or price pressures shift. The bank has spent the past year balancing support for activity with its effort to keep inflation under control.

Markets will now focus on the ECB’s next signals for clues on how long rates may stay at this level and whether recent growth strength can last into the second half of the year.