Akintunde Oyedokun
Research Analyst
Oil prices slipped Wednesday as a rise in U.S. diesel inventories raised demand concerns, offsetting a sharp drop in crude stockpiles. Brent settled at $68.22 per barrel, while WTI closed at $64.05. The Federal Reserve cut rates by 0.25% and signaled more cuts ahead, adding to market caution. Kazakhstan resumed exports via the Baku-Tbilisi-Ceyhan pipeline, Nigeria lifted emergency rule in Rivers State, and Russian supply risks remained in focus after fresh Ukrainian attacks.
Fed Cuts Rates for First Time in 2025, Signals More Easing as Job Market Weakens
The Federal Reserve cut interest rates by 0.25 percentage points to 4.00%-4.25%, its first cut since December, and signaled more reductions ahead to counter a weakening job market. Fed Chair Jerome Powell cited slower hiring, shorter workweeks, and rising unemployment—especially among minorities—as key concerns. He said inflation pressures are easing, giving room for further easing despite President Trump’s calls for steeper cuts.
Bank of Canada Cuts Key Rate to 2.5%, Signals Openness to Further Easing Amid Weak Job Market
The Bank of Canada cut its key interest rate by 25 basis points to 2.5%, the lowest in three years, citing a weak job market, shrinking GDP, and easing inflation risks. Governor Tiff Macklem said the bank is ready to cut rates further if economic risks worsen, with markets giving a 48% chance of another cut on October 29.
The economy has lost over 100,000 jobs in two months, pushing unemployment to a nine-year high. The Canadian dollar slipped 0.2% to C$1.3760 after the announcement.
Ghana Cuts Interest Rate by Record 350bps as Inflation Falls, Growth Strengthens
Ghana’s central bank lowered its key rate to 21.5%, its biggest cut ever, citing falling inflation and stronger growth. Inflation dropped to 11.5% in August, the lowest since 2021, while Q2 GDP grew 6.3%, led by services. The bank expects inflation to hit its 8–10% target by year-end, supporting further economic expansion.
Tinubu Ends Rivers State Emergency Rule, Reinstates Governor
President Bola Tinubu has lifted the six-month emergency rule in Rivers State, reinstating Governor Siminalayi Fubara, his deputy, and the state assembly. The measure was imposed in March after a political standoff halted governance. Tinubu said renewed cooperation among stakeholders paved the way for a return to democracy, with officials set to resume duties on September 18.
