The European Central Bank left interest rates unchanged on Thursday and offered a modestly upbeat assessment of the euro zone economy, raising doubts among investors about further policy easing even while U.

There’s little reason for the European Central Bank to lower interest rates further unless the economy suffers a major blow, according to Governing Council member Martins Kazaks.

Policymakers must remain agile, noting that the stronger euro was having a significant disinflationary effect, Bank of France Governor Francois Villeroy de Galhau said.

European Central Bank policymakers are setting a high bar for an interest rate cut in September and they would need to see a significant deterioration in growth and inflation before backing further easing,

The European Central Bank is leaving interest rates unchanged as it waits to see how big a blow U.S. President Donald Trump's tariffs will inflict on the economy before deciding whether to cut rates again.

The central bank left its key deposit rate at 2% after making eight cuts since last June.

ECB President Christine Lagarde left economists and investors a little less certain as to when, or perhaps even whether, further easing will arrive.

European bonds dropped for a third day as traders continued to reduce their bets on a final European Central Bank interest-rate cut this year.