Minutes from the European Central Bank's July meeting show officials believe inflation risks are "broadly balanced"

Minutes of the European Central Bank's meeting in July show that most officials believe the inflation risks are "overall balanced," and their outlook for consumer prices remains applicable. The meeting summary released on Thursday shows that, despite mentioning further interest rate cuts, keeping the deposit rate at 2% after eight cuts is seen as a "prudent" approach. The minutes state, "Most members believe that the risks facing the inflation outlook are overall balanced." The meeting pointed out that the recent resilience of eurozone economic data has been fully reflected in the June forecasting baseline scenario, which has been widely validated. The market generally expects the European Central Bank to keep borrowing costs unchanged for the second time in less than two weeks. Economists predict another rate cut in December, but investors are no longer fully digesting the expectation of further cuts. Most policymakers believe that the current level of interest rates is appropriate, with the inflation rate staying near the 2% target, and the economy showing resilience to headwinds such as tariffs and wars. In July, the European Union reached a trade agreement with the United States, locking in a 15% tariff for most exported goods from the region.