European Central Bank board member Naegele: Interest rates are at a "very good level," allowing the central bank to act flexibly.

German Central Bank President and member of the European Central Bank Management Committee Joachim Nagel stated that the current borrowing costs in the Eurozone are sufficient to address the ongoing trade tensions, allowing the European Central Bank to react to further shocks when necessary. Nagel said, "The key interest rates are currently at a very ideal level, and we can observe the economic development from here. If necessary, we can respond flexibly." He pointed out that as the consumer price index has remained stable at 2% over the past two months, "we can now remove inflation from the list of major challenges." These comments reinforce market expectations that after eight consecutive 25 basis points rate cuts within a year, and keeping rates steady at 2% in July, the European Central Bank's willingness to cut rates again next month may be limited. Christodoulos Patsalides, the Central Bank Governor of Cyprus, believes that it is premature to interpret last month's rate decision as a pause before further action. Peter Kaimr, the Central Bank Governor of Slovakia, argues that the European Central Bank should not cut rates again unless there is evidence of a severe economic deterioration. Meanwhile, Mrti Kazks of Latvia states that "maintaining the current rate level is valuable." By staying put, the European Central Bank has time to assess the impact of the recent EU-US trade agreement - under the agreement, the EU accepted a 15% tariff on nearly all its exports to the US. Nagel warned that these tariffs would cause damage, and some issues are yet to be resolved. "The US tariff level has significantly increased," he said, "and many details still need to be clarified. It is important not to leave room for interpretation. We see from the US government that today's rules could change tomorrow."