European Central Bank keeps interest rates on hold despite sluggish growth

Central bank shuns calls to reduce borrowing costs as higher US tariffs loom

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The European Central Bank has kept interest rates on hold as figures showed the eurozone economy maintaining a steady pace of economic growth amid low inflation.

In what was widely expected to be a pause before further cuts later in the year, the Frankfurt-based central bank shunned calls to reduce the cost of borrowing and held its main interest rate at 2% and the deposit rate at 2.15%.