The European Central Bank is widely expected to keep interest rates on hold at its meeting in Frankfurt next week, when investors will watch closely for signals about the likely timing and scale of future moves.
Markets are betting on another rate cut in September, pricing in a roughly 85 per cent chance of the ECB reducing its benchmark deposit rate by 0.25 percentage points to 3.5 per cent.
However, policymakers seem determined to keep their options open, unlike earlier this year when they clearly signalled rate cuts would start in June.
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