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 summer 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 policies dealt it further blows.

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, shifting the focus to what signals ECB President Christine Lagarde might send about policy ahead.

Investors are already pricing in a pause in July, and some conservative policymakers have also advocated a break to give the ECB a chance to reassess how exceptional uncertainty and policy upheaval both at home and abroad will shift the outlook.

"Reasons for the ECB to be cautious moving forward relate both to the need for more information on the trade war, and retaliatory measures in particular, and on German fiscal easing," Societe Generale economist Anatoli Annenkov said.

While ECB board member and chief hawk Isabel Schnabel has made explicit calls for a pause, Lagarde is likely to be more cautious, repeating the bank's standard guidance that decisions will be taken meeting by meeting, based on incoming data.

The case for a pause rests on the premise that the short- and medium-term outlooks for the 20-country currency bloc differ greatly and may require a different policy response.

Inflation could dip in the short term, possibly even below the ECB's target, but increased government spending and higher trade barriers could add to price pressures later.

The added complication is that monetary policy impacts the economy with a 12-to-18 month lag, so support approved now could be giving help to a bloc that no longer needs it.

A cut on Thursday would take the deposit rate to 2.0%, which the ECB considers "neutral" - no longer holding back the economy but not yet stimulating it either.

DIVERGENT OUTLOOK

Acknowledging near-term weakness, the ECB is expected to cut both its growth and inflation projections for next year.

U.S. President Donald Trump's trade war is already damaging activity and will have a lasting impact even if an amicable resolution is found, given the hit to confidence and investment.

This sluggish growth, along with lower energy costs and a strong euro, will curb price pressures.