The European Central Bank opted to keep interest rates steady, indicating a cautious stance towards rate cuts in the midst of inflation hovering above the bank’s target. With the key deposit rate remaining at 3.75 percent, the bank aims to curb demand for loans and moderate the eurozone economy while containing inflation. Despite a recent rate reduction, policymakers emphasize the need for sustainable inflation around the 2 percent target. While investors anticipate future rate cuts, the ECB is yet to commit to a specific rate path. The bank highlighted stable underlying inflation measures but acknowledged elevated domestic price pressures and services sector inflation. With upcoming tourism events and economic factors in play, the decision on September's policy remains undecided.