Frankfurt: The European Central Bank (ECB) is set to decide on interest rates in the eurozone on Thursday afternoon, reported German news agency dpa. Many economists now anticipate a pause following eight rate cuts since last summer, as the ECB has managed to halt the rapid inflation of recent years.

According to BERNAMA News Agency, the consequences of the trade dispute with the United States for the European economy and inflation remain unclear. Most recently, the ECB lowered the deposit rate, which credit institutions receive when they park money at the bank and is relevant for savers, for the seventh consecutive time in June to 2 percent. Lower interest rates support the eurozone economy by making loans cheaper for businesses and consumers, although savers must contend with lower bank interest rates.

Member of the ECB’s executive board Isabel Schnabel recently tempered expectations, emphasizing that the bar for further rate cuts is “very high.” The president of Germany’s central bank, the Bundesbank, Joachim Nagel also advocates a wait-and-see approach. Other central bankers, such as those from France, have expressed concern that inflation could fall below the ECB’s medium-term target of 2 percent due to the weak eurozone economy, US tariffs, and the strong euro.

The ECB’s primary goal is stable prices. In June, inflation in the eurozone was at 2 percent, according to the statistics agency Eurostat, precisely meeting the ECB’s target. Higher inflation reduces people’s purchasing power. However, central banks also want to avoid persistently falling prices, as this could lead businesses and consumers to delay investments in hopes of even lower prices, which would slow economic growth.