The European Central Bank has decided to keep its benchmark interest rate at 2%, pending clarification in trade talks with the US.

The ECB postponed any cut in its benchmark interest rate, keeping it at 2%, because of uncertainty over US tariffs on European goods. President Christine Lagarde indicated the bank was nearing the end of its monetary policy cycle, but trade risks have prompted a pause. Economic growth was 0.6% in the first quarter and inflation eased to 2%, supported by a stronger euro and falling oil prices.