Key developments that could impact markets today, Thursday

- Monetary policy decisions from the Bank of England, the European Central Bank, the Riksbank, and the Bank of Norway.

- US Consumer Price Index (CPI) for November.

Central Bank Decisions: Shifts in Monetary Policy

1- Bank of England: Rate Cut Expected Amid Falling Inflation

Markets are leaning heavily toward a Bank of England interest rate cut of a quarter of a percentage point (25 basis points), from 4% to 3.75%.

These expectations follow an unexpected decline in the UK's November inflation rate, which reassured investors that monetary easing is imminent.

However, UK inflation remains the highest among G7 economies at 3.2%, meaning that the path to a rate cut could be gradual and will take time.

2- European Central Bank: Steady but Unchanged

The European Central Bank is expected to keep interest rates unchanged at 2% at its final meeting of the year.

More important than the decision itself are the forward guidance the bank will issue. It is likely to reiterate its intention not to cut interest rates in the near term and may raise its economic growth forecasts.

3. Bank of Japan: Preemptive Meeting Raises Expectations

The Bank of Japan began its two-day meeting, with the final decision expected on Friday morning.

Market expectations point to a strong likelihood of the bank raising interest rates by 25 basis points, from 0.5% to 0.75%.

If this happens, it would be the highest interest rate in Japan in three decades, in an attempt to counter persistent inflationary pressures above the 2% target.

US Inflation Report: Exceptional Reading Amid Data Shortfall

The US Bureau of Labor Statistics releases its November Consumer Price Index (CPI) report today, an event eagerly awaited by investors for several reasons:

First reading after government shutdown: This is the first inflation report released since the end of the 43-day US government shutdown on November 12.

No month-to-month comparison: Due to the shutdown, October data was not collected.

Therefore, the report will not include the usual monthly comparison of November and October prices. The reading will focus on the annual inflation rate.

Expectations and Impact: Annual inflation is expected to come in at 3.1%, while core inflation (excluding food and energy) is expected to come in at 3.0%.

Political Factor: Trump and Statements About the Next Fed Chair

US President Donald Trump added a new dimension of political uncertainty to the scene, announcing in a televised address Wednesday evening that the next Federal Reserve chair will be someone who "believes in lowering interest rates very substantially."

Trump stated, "I will soon be announcing our next Fed chair, someone who believes in lowering interest rates very substantially, and mortgage payments will be lower even more."

These statements raise questions about the future independence of the US central bank, especially since the Fed cut interest rates last week in a decision that divided its members.

Ultimately, today's and tomorrow's data could prove pivotal, bringing together shifts in monetary policy in Europe and the UK, crucial economic data from the US, and political interventions that could reshape long-term forecasts. Investors are advised to closely monitor these events, as today's decisions and statements will lay the foundation for market expectations as we enter 2026.