The European Central Bank (ECB) left interest rates unchanged on Thursday as expected but offered no clues about its next move, even as investors continue to bet that more support will be needed as inflation dips below target next year.

The ECB halved its key rate in the year to June but has been on hold at 2 percent since, arguing that the economy of the 20-country euro zone is in a "good place" even if more easing cannot be ruled out.

Recent data has confirmed this sanguine view, giving policymakers time to understand how US tariffs, higher German government spending, looming Federal Reserve rate cuts and political turmoil in France might impact growth and inflation.

"We continue to be in a good place," ECB President Christine Lagarde told a press conference, adding inflation was "where we want it to be", the domestic economy was solid and uncertainty over global trade had eased after a number of US tariff deals.

"But we are not on a pre-determined path," she added, repeating the bank's mantra that its decisions would remain dependent on incoming economic data, and noting that Thursday's decision was taken unanimously.

Money markets priced in a 50 percent chance of one last cut by next spring, even as they expect the Fed to ease US borrowing costs six times by the end of 2026.

Inflation is now seen at 1.9 percent in 2027, below the 2 percent projected in June, and core inflation is seen at 1.8 percent then, both below the ECB's 2 percent target, fresh projections showed.

In any case, the public debate is at the margins and focused on just a single rate cut, indicating that the ECB is done with the bulk of changes to monetary policy, with rates likely to stay around this level for an extended period.

The key debate is around how policymakers see risks, which Lagarde in her press conference described as "more balanced" than in June but still with a more uncertain than usual outlook for inflation. (Reuters)