With the European Central Bank about to cut interest rates for the first time, the path of global interest rates will diverge

The European Central Bank is likely to open the door to a weaker euro on Thursday as its first rate cut puts the region on a different policy path from the US. A 25 basis point rate cut at this month's meeting is all but certain, with ECB policymakers led by Ms Lagarde insisting they are willing to act separately from the US Federal Reserve. However, tolerance among officials may become important in discussions about further monetary easing, especially after recent reports suggested that consumer price pressures were continuing. The ECB is now forecast to cut rates by 25 basis points in June, followed by similar cuts in September, October and December after a pause in July.