FRANKFURT — The European Central Bank held its key deposit rate stable, as it waits for more clarity on the impact that U.S. tariffs will have on the eurozone economy.

The pause follows seven consecutive interest rate cuts over the past year, which have brought the deposit rate to 2 percent — a level the ECB considers neither stimulative nor restrictive for the economy.

“The environment remains exceptionally uncertain, especially because of trade disputes,” the Bank said in a press release.

The move was widely expected due to strong signaling from policymakers that they would defer any further interest rate reductions until after the outcome of trade negotiations between Brussels and Washington was known.

The two sides are closing in on a deal for a 15-percent U.S. baseline tariff — though the EU stands ready to retaliate if U.S. President Donald Trump pushes back too strongly, according to EU diplomats briefed on the strategy.

The global uncertainty spurred by the erratic policymaking style of the U.S. administration has also sparked a move away from U.S. dollar assets into European ones, pushing the euro to multi-year highs.

Financial markets expect the ECB to deliver one more interest rate cut before the end of the year on the back of policymakers’ warnings that a strong euro combined with higher import duties could cause inflation to fall well below the ECB’s 2 percent target.

However, outspoken hawk Isabel Schnabel recently said that the bar for another rate cut is “high”.

ECB President Christine Lagarde’s press conference at 14:45 CET could provide more guidance on the path of future policy decisions.