Akintunde Oyedokun
Research Analyst
Oil prices climbed Thursday as U.S. sanctions on Iran, OPEC+ output cuts, and Middle East tensions outweighed a stronger dollar. Brent crude rose $1.22 (1.72%) to $72, while WTI crude settled higher at $68.26 for April and $68.07 for May. OPEC+ announced further supply cuts until June 2026, and U.S. crude inventories rose 1.7 million barrels, exceeding expectations.
U.S. Current Account Deficit Falls in Q4 but Faces Headwinds
The U.S. current account deficit declined by $6.3 billion to $303.9 billion in Q4, aided by a surplus in primary income. However, a record surge in imports in January, driven by tariff concerns, threatens a reversal.
For 2024, the deficit soared 25.2% to a record $1.13 trillion (3.9% of GDP). The goods trade deficit also widened to $326.1 billion in Q4, with exports dropping in key sectors like aircraft and semiconductors. While the dollar remains steady, rising trade and budget deficits pose long-term risks.
BoE Holds Rates at 4.5%, Signals Caution on Future Cuts
The Bank of England kept interest rates steady at 4.5%, with an 8-1 vote, as inflation remains above target and economic uncertainty looms. Governor Andrew Bailey stressed the need for evidence of cooling price pressures before cutting rates. Market bets on a May rate cut fell below 50%, while global central banks also weighed trade tensions and fiscal policies. The BoE predicts inflation to peak at 3.75% later this year, with cautious adjustments ahead.
South Africa’s Central Bank Holds Rates As Economic Uncertainty Looms
The South African Reserve Bank kept its repo rate at 7.50%, pausing its rate-cutting cycle due to global and domestic risks. While inflation remained stable at 3.2% and the rand showed resilience, concerns over U.S. trade tensions, a stalled national budget, and a proposed VAT hike influenced the cautious stance. The bank also lowered its 2025 growth forecast to 1.7% and warned of potential trade risks if South Africa loses AGOA benefits. Analysts are split on whether the decision was a missed opportunity or a prudent move.
BOI Launches N10bn GLOW Fund To Support Women Entrepreneurs
The Bank of Industry (BOI) has launched a N10 billion fund, called Project GLOW, to help women entrepreneurs in Nigeria. The fund provides loans, training, and support to help women grow their businesses. The initiative aims to close the financial gap faced by female business owners, who make up 40% of Nigeria’s small businesses. The GLOW Fund is part of BOI’s effort to promote gender equality and economic growth.
