The European Central Bank kept borrowing costs unchanged at its June meeting, reflecting a cautious stance as eurozone growth slowed in the second quarter. Policymakers pointed to mixed inflation signals and a softer economic outlook across the currency bloc.

The decision extends the ECB’s wait-and-see approach after a period of rate adjustments aimed at bringing price growth under control. With inflation still not fully settled and activity losing some momentum, officials opted to hold policy steady rather than risk moving too quickly.

The latest growth figures underscore the uneven recovery facing the euro area, where stronger pockets of demand are being offset by weaker performance in other parts of the economy. That slowdown has kept pressure on the ECB to balance support for growth with its mandate to keep inflation in check.

Analysts will now watch incoming data closely for signs of whether the central bank is nearing another policy shift later in the year. For households and businesses, the ECB’s decision means borrowing costs are likely to remain elevated for now.