Nomura now expects the European Central Bank to lower rates only once this year, diverging from most brokerages that still see at least two reductions, after the central bank signalled the possibility of a pause at its latest meeting.

The European Central Bank cut interest rates by a quarter-point Thursday, responding to signs of deteriorating activity and weakening inflation despite bond-market turmoil over plans for a splurge of spending.

FRANKFURT — The European Central Bank cut its key deposit rate by 25 basis points to 2.50 percent, but its boss, Christine Lagarde, said the Bank may pause cuts as growing uncertainty clouds the economic outlook.