ECB to cut rates again as the case builds for a summer pause

By Balazs Koranyi and Francesco Canepa

FRANKFURT (Reuters) -The European Central Bank is almost certain to cut interest rates again on Thursday and keep all options on the table for subsequent meetings, even as the case grows for a pause in its year-long easing cycle.

The ECB has cut rates seven times in 13 months as inflation eased from post-pandemic highs, seeking to prop up a euro zone economy that was struggling even before erratic U.S. economic and trade policy dealt it yet another blow.

With inflation now safely in line with its 2% target and a cut flagged by a host of policymakers, Thursday’s decision will be uncontroversial, with the focus on what signals ECB President Christine Lagarde might send about policy ahead.

Investors are already pricing in a pause in July, and some co