By Balazs Koranyi and Francesco Canepa

FRANKFURT (Reuters) -The European Central Bank is set to leave interest rates unchanged on Thursday as inflation remains in line with its target, but a fraught trade and political outlook means it will keep alive the prospect of further easing.

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

Data over the summer has only confirmed this sanguine view, giving policymakers time to understand how U.S. tariffs, higher German government spending and political turmoil in France might impact growth and inflation.

This makes it likely that ECB President Christine Lagarde will once again aim to be “deliberately

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