The European Central Bank is expected to hold interest rates steady at its meeting today, Thursday, July 24, 2025. statement due at 1215 GMT/ 1815 US Eastern time European Central Bank President Lagarde will speak a half hour laterThe ECB is seen pausing after a year-long string of cuts as it monitors the uncertain outcome of U.S.-EU trade talks. With inflation back at its 2% target and growth fragile, policymakers are taking a wait-and-see approach, particularly ahead of the August 1 deadline for potential new U.S. tariffs. The threat of a steep 30% tariff from the Trump administration has complicated the ECB's outlook, prompting a reassessment of growth and inflation risks.While there are signs that Washington and Brussels may settle on a lower 15% tariff, uncertainty remains high. Economists suggest that even a milder outcome could justify another rate cut later this year, likely in December. Previous trade agreements—with Japan, the UK, and others—have set varying tariff benchmarks, reinforcing concerns that EU tariffs could end up higher and more disruptive than initially expected.Despite external risks, parts of the eurozone economy show resilience. Loan demand is up, equity markets remain firm, and foreign investment has flowed into the bloc amid U.S. policy volatility. Still, a stronger euro—partly driven by investor caution over U.S. policy—has raised concerns at the ECB, as it risks undercutting exports and dampening inflation. While some officials caution against overreacting, ECB President Christine Lagarde is likely to acknowledge the risks and reiterate the Bank's commitment to respond if inflation weakens further. This article was written by Eamonn Sheridan at investinglive.com.