[Scotiabank: ECB to Keep Rates Unchanged in July Amid High Uncertainty] Jin10 News, July 18 – Scotiabank stated that policy adjustments do not necessarily follow a linear path, especially during periods of heightened uncertainty. This perspective seems to be dominating market pricing for the European Central Bank's (ECB) interest rate decision next Thursday. The market expects the ECB to keep the deposit rate unchanged at 2.25% after a 25 basis point hike in June. The general market consensus also anticipates no action. The ECB President Christine Lagarde's most recent significant statement was on July 1, when she said: 'I believe the upside risks to inflation and downside risks to growth that we face may be more balanced than they were a few weeks ago, as changes are happening rapidly.' Since then, the conflict between the U.S. and Iran has flared up again, with WTI and Brent crude oil prices both rising by approximately $12 per barrel. To some extent, the June inflation report may have provided the ECB with more time to assess the situation, given its adherence to a 'data-dependent' approach. The overall CPI in the Eurozone fell by 0.1% month-on-month, while core CPI year-on-year dropped from 2.6% (the highest since April last year) to 2.4%. Nevertheless, market sentiment indicators clearly show that hawkish sentiment still predominantly prevails.