<h1>ECB Holds Interest Rate at 2% Amid US Tariff Uncertainty and Trade Negotiations Impacting Economy</h1> The European Central Bank has maintained its benchmark interest rate at 2 percent amid uncertainty over the impact of US tariffs on the Eurozone economy. The bank has previously cut rates eight times since mid-2024 to support growth following inflationary pressures linked to geopolitical events. The decision to hold rates reflects ongoing trade negotiations between the EU and the US, with tariff rates threatened by the US ranging from 10 to 50 percent. Higher tariffs could reduce European export earnings and slow economic growth, potentially prompting further rate cuts. Current economic indicators show moderate growth and inflation aligned with targets, supported by a stronger Euro and lower global oil prices. The ECB is monitoring these factors closely before considering additional monetary easing, with analysts anticipating a possible rate cut in September depending on trade outcomes.