Akintunde Oyedokun
Research Analyst
Oil prices rose more than 1% on Wednesday after U.S. President Donald Trump renewed threats against Iran, boosting geopolitical risk sentiment. Brent crude settled at $79.89 per barrel, while WTI rose to $76.84.
However, gains were limited by concerns over a looming global oil supply surplus and weak demand growth.
UK Inflation Holds at 2.8% On Strengthened Rate Cut Bets
UK inflation stayed at 2.8% in May, unchanged from April and below expectations, reinforcing views that the Bank of England may pause rates at 3.75%.
Lower food and energy costs offset higher airfares, while services inflation rose to 3.7%.
The data slightly weakened the pound and lowered bond yields as markets trimmed expectations of further rate hikes.
South Korea Signals Possible Rate Hike As Inflation Stays Elevated
South Korea’s central bank said inflation is likely to remain above its 2% target through next year, driven by high energy costs, a weaker currency, and rising wages. Governor Shin Hyun-song pledged continued action to keep prices under control, reinforcing expectations of a potential interest rate hike in the coming months.
The outlook follows a rise in consumer inflation to 3.1% in May, its highest level in more than two years.
Namibia Raises Interest Rate to Tackle Inflation
Namibia’s central bank increased its benchmark rate by 25 basis points to 6.75%, its first hike in three years, citing rising inflation risks linked to higher oil prices.
Inflation rose to 4.1% in May from 3.1% in April, prompting the bank to raise its 2026 inflation forecast to 4.0% from 3.7%. The move follows a similar rate increase by South Africa’s central bank.
Nigeria’s Current Account Surplus Hits $4.98bn in Q1 2026
Nigeria’s current account surplus rose 255.7% to $4.98 billion in Q1 2026, driven by higher oil and gas exports and a sharp decline in fuel imports, the CBN said.
Exports increased to $15.49 billion, while imports fell to $9.54 billion. External reserves also climbed by $2.6 billion to $48.35 billion during the quarter.
Portfolio investment inflows remained strong, highlighting sustained foreign investor interest in Nigerian assets.
