based on materials from the site - By Cryptopolitan_News

The ECB is not backing down. Even though Donald Trump threatens to impose 30% tariffs on imports and escalate tensions in global trade, the European Central Bank decided on Thursday to refrain from any retaliatory measures.

They are fixing rates at 2% and delaying any reduction in borrowing costs. This decision was made just before the seven-week summer break, as policymakers clearly prefer to wait and see if Trump's threats translate into real consequences before taking any action.

The logic is simple: no rush. Many officials are about to go on vacation. They would prefer to continue repeating that inflation is at the set level, not to panic before the next set of economic forecasts, which will be published ahead of the meeting on September 10-11, and then to address this.

This means no new actions, but it does not deny that the situation is worsening. The euro is strengthening, which negatively affects exporters and lowers inflation forecasts. France's tangled budget issues add heat at the most inconvenient time.

ECB monitors data, ignores panic
Behind closed doors, the ECB understands that pressure is mounting. A rate cut in September is obviously back on the agenda, even as they continue to hide behind the usual position of 'meeting by meeting.'

President Christine Lagarde did not flinch in her statement on Thursday, reiterating that 'the risks to growth are tilted to the downside,' as noted by Morgan Stanley economists in their review 'Ready for the Beach.' Next week, the ECB will receive the data necessary to assess this risk.
On Tuesday, the ECB's own bank lending review is falling. On Wednesday, the consumer confidence report is released, and on Thursday, purchasing managers' indices across the region will be published, just before policymakers wrap up their work. On Friday, the week will end with data on business confidence from Ifo in Germany and economic sentiment in Italy.

Outside the eurozone, new inflation data will come from Japan, Brazil, and other countries, while Bank of England Governor Andrew Bailey will address British lawmakers with a report on financial stability. His speech coincides with the release of the UK government finance data on Tuesday, and later this week, data on the purchasing managers' index (PMI) and retail sales will be published.

Global markets are preparing for changes in central bank policies.
In the U.S., the economic calendar is not very busy. The housing market report expected on Wednesday is unlikely to show much change in existing home sales.

The figures remain at around 4 million on an annualized basis, which is just slightly better than the post-crisis low of 2010. A report on Thursday may show a slight increase in new home sales after a sharp drop in June. But the truth is that the U.S. housing market is still blocked. High mortgage rates and unaffordable prices are keeping buyers at bay.

Meanwhile, Canadian economic sentiment will be assessed this week based on business and consumer surveys. They will provide insight into inflationary concerns and investment trends. Retail sales data for May and June may also confirm a buyer exodus, especially after tariffs sharply increased car purchases at the beginning of the year.

In Asia, everyone is trying to make sense of the chaos in global trade. South Korea opens the week with export data, followed by confidence and retail trade figures. China will keep its basic lending rates unchanged for the second consecutive month.

In Africa, in South Africa, June inflation is likely to rise from 2.8% to 3.1% due to rising meat prices. In Nigeria, the central bank is likely to keep rates at 27.5% for the third consecutive time, while inflation remains high at 22.2%.

In Latin America, Argentina will publish its GDP forecast for May on Monday. In April, there was a growth of 1.9% month-on-month and 7.7% year-on-year, driven by President Javier Milei's decision to ease currency controls related to a $20 billion IMF agreement. Analysts expect Argentina's GDP to grow by 8% in the second quarter and by 4.2% in the third, according to Bloomberg.
Mexico is also under pressure. The GDP forecast on Tuesday will be published after an unexpected growth in April, while inflation finally slowed down in June, and the central bank hinted that it may now slow down the implementation of monetary easing plans.

Brazil will wrap up the week with the release of the mid-month inflation report, which is likely to come in below for the third time in a row due to extraordinarily high borrowing costs. However, inflation expectations for 2025 are still above the target level.

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