The European Central Bank is expected to keep interest rates unchanged in July, maintaining the deposit rate at 2.25%.

Odaily Planet Daily News Scotiabank stated that policy adjustments do not have to follow a straight line, especially during periods of high uncertainty. The market expects the European Central Bank to keep the deposit rate unchanged at 2.25% at next Thursday's interest rate decision, following a 25 basis point rate hike in June. ECB President Lagarde said on July 1 that upside risks to inflation and downside risks to growth may be more balanced than a few weeks ago. Since then, conflict between the US and Iran has reignited, with WTI and Brent crude oil both rising by approximately $12 per barrel. In June, the overall CPI in the Eurozone fell by 0.1% month-on-month, while the core CPI year-on-year dropped from 2.6% to 2.4%.