BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Norges Bank (NB) is expected to keep the sight deposit rate unchanged at 0.50 percent at Thursday's meeting. While developments since September have been roughly as expected, the combination of a weaker NOK and higher oil prices clearly calls for an upward adjustment of the rate path, signalling a more than 50 percent probability of a rate hike in 2018, Danske Bank reported.
However, it is hard to understand how Norges Bank can avoid a significant upward adjustment to the rate path at this junction. Actually, a pure technical approach indicates a rate path that implies a rate hike in March 2018 and another hike before the end of next year.
"An upward revision of NB's interest rate path should trigger a steeper 2019 FRA-curve. Short-end ASW-spreads may widen over New Year," the report said.
Meanwhile, the central bank is again expected to lean on the ‘financial imbalances and uncertainty’ factor introduced to avoid sudden shifts in the expected rate setting. This leaves Norges Bank a lot of room to manoeuvre, which in turn makes it difficult to make an accurate estimate.
