The eurozone economy expanded faster than expected in the second quarter, growing 0.4% from the previous three months, according to Reuters. The reading beat market forecasts and suggests the bloc has continued to avoid a sharper slowdown despite persistent global uncertainty.

The stronger-than-anticipated result comes as the European Central Bank kept interest rates unchanged at 2.25%. Policymakers have been balancing signs of resilience in the economy against lingering inflation pressures and a fragile international backdrop.

The latest figures point to an economy that is holding up better than many analysts expected at the start of the year. Still, growth remains uneven across the currency union, and officials are likely to continue watching demand, prices, and trade conditions closely in the months ahead.

For households and businesses, the ECB’s steady stance means borrowing costs are likely to stay elevated for now. The central bank has given no signal that it is rushing to cut rates, preferring to wait for clearer evidence on inflation and the broader economic outlook.