Core Viewpoint - The European Central Bank (ECB) is expected to maintain its key interest rates during the upcoming monetary policy meeting, continuing its pause on rate hikes due to improved economic data from the Eurozone [1][2]. Economic Data - Eurozone GDP grew by 0.1% quarter-on-quarter in Q2, exceeding market expectations and indicating a recovery in economic resilience [1]. - The Harmonized Index of Consumer Prices (HICP) rose by 2.1% year-on-year in August, slightly above the previous value of 2.0% and meeting the ECB's inflation target of 2% [1]. Trade Agreements - Recent trade agreements between the US and Europe provide additional support for the regional economic outlook, helping to alleviate previous downward pressures from external trade uncertainties [1]. Market Expectations - While the current interest rate decision is widely anticipated, market focus has shifted to future policy guidance, with many economists believing the ECB's easing cycle has ended [2]. - The swap market still implies a 25 basis point rate cut within the next 12 months, indicating a divergence between financial market expectations and mainstream economic forecasts [2]. ECB Communication Strategy - ECB President Christine Lagarde is expected to emphasize "enhanced economic resilience" and "reduced external trade uncertainty" in her upcoming press conference [2]. - The ECB management has indicated that further rate cuts would require a significant deterioration in economic prospects or persistent deflation risks, suggesting a cautious approach to future policy adjustments [2].