Akintunde Oyedokun
Research Analyst
Oil prices were mostly flat on Tuesday, with Brent crude hovering around $62 per barrel and U.S. WTI near $58, as markets balanced weakening prospects for a Russia–Ukraine peace deal against mounting geopolitical risks in the Middle East and ongoing supply constraints.
Traders remained cautious, keeping a close watch on Middle East developments and potential supply disruptions.
BOJ Considers More Rate Hikes Amid Inflation, Yen Weakness
Bank of Japan officials signaled the possibility of further interest rate increases following December’s hike to 0.75%, citing ongoing inflation pressures and a weak yen. While some board members called for steady, periodic rate rises to control future inflation, others urged caution, emphasizing the need to monitor economic and financial developments. Government representatives backed the move, projecting steady wage growth at major firms and noting that public spending would support economic growth in the coming years.
Trump’s 2026 Tax Cuts to Boost Economy
Trump’s One Big Beautiful Bill extends 2017 tax cuts, raising exemptions and offering new deductions for individuals, including tipped income, overtime, seniors, and auto loans. Businesses benefit from permanent lower corporate rates, full expensing for equipment and R&D, relaxed interest rules, and pass-through income deductions. R&D and capital investment breaks are expected to drive growth, while some business breaks’ impact is debated.
Qatar Injects $3.5 Billion into Egypt’s Mediterranean Luxury Project
Egypt has received $3.5 billion from a Qatar-backed development initiative aimed at creating a luxury real estate and tourism hub along its Mediterranean coast. The funding is part of Doha’s broader $7.5 billion investment commitment to Cairo, the Egyptian cabinet confirmed on Tuesday. The project is expected to boost tourism and create thousands of jobs in the region.
CBN Sees 4.5% Growth, Inflation Falling in 2026
Nigeria’s central bank forecasts 4.49% economic growth and inflation easing to 12.94% in 2026, supported by stable forex markets, rising oil output, and ongoing reforms in oil, tax, and exchange-rate policies. The bank expects stronger non-oil growth, improved external reserves of $51 billion, and a current account surplus of $18.8 billion. Fiscal deficits will remain, funded mainly through domestic borrowing, while oil is projected at $55 per barrel with output at 1.5 million barrels per day.
