Akintunde Oyedokun
Research Analyst
Oil rose Wednesday to its highest since September, with Brent at $68.49 and WTI at $63.43, driven by U.S. storm disruptions, Kazakhstan outages, and a weaker dollar. Prices are on track for their strongest monthly gains since July 2023 as markets await U.S. inventory data and the Fed’s policy decision. Geopolitical tensions in the Middle East also added to market uncertainty.
Fed Holds Rates As Inflation Concerns Persist
The U.S. Federal Reserve kept interest rates unchanged, citing elevated inflation and steady economic growth, while giving no clear signal on when cuts may resume. Policymakers said the labour market is stabilising and removed references to rising employment risks. Two officials dissented in favour of a rate cut. Markets reacted mildly, with Treasury yields edging higher, and investors now expect the next rate cut around June.
Germany Cuts Growth Forecasts
Germany trimmed its outlook for 2026–2027, blaming trade uncertainty and slow policy execution. Growth is now seen at 1.0% in 2026 and 1.3% in 2027, with exports under pressure.
Public spending is supporting the economy, while weaker projections allow the government to increase borrowing. The downgrade comes despite a modest recovery from years of economic contraction.
Mozambique Nears End of Rate-Cut Cycle Despite Fresh Easing
Mozambique lowered its benchmark rate to 9.25% for a 13th consecutive cut but warned that further reductions may be limited due to flood damage and external risks. Inflation has slowed to a 13-month low, though analysts expect it to rise later in the year. The country is also negotiating a new IMF programme that could pave the way for debt restructuring. Economic growth remains vulnerable as recovery efforts from recent disasters continue.
Nigeria’s N501bn Power Bond Fully Subscribed
The Federal Government of Nigeria’s first power sector bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP) to raise N501 billion was fully subscribed by investors. The funds will settle historic arrears of payment to power companies, ease liquidity, and support market reforms in the country. It is expected to benefit over 12 million electricity customers. The government plans to issue up to N4 trillion in bonds to fully clear legacy debts and stabilize the sector.
