ECB holds interest rates steady but signals potential for September hike amid persistent inflation concerns.

The European Central Bank (ECB) maintained its key interest rates at current levels, as widely anticipated. However, the central bank indicated that further rate increases in September remain a possibility, particularly as a fresh surge in energy prices threatens to keep inflation above its 2% target. The ECB noted that uncertainty remains high and the full inflationary impact of the energy shock has yet to materialize.