Jan 28th Breakfast Paper
Bank of Ghana Delivers 250bps Rate Cut as Inflation
Falls to 5.4%
The Bank of Ghana cut its policy rate by 250 basis points to 15.5% at its first meeting of 2026, lowering borrowing costs to their lowest level since February 2022. The move reflects sustained disinflation, with headline inflation falling to 5.4% in December, the lowest since July 2022 and the 12th consecutive month of decline. Governor Johnson Asiama said inflation is expected to move closer to the 8% medium-term target, while economic growth is projected to remain strong in 2026. The central bank emphasized it will continue to monitor conditions closely to ensure macroeconomic stability supports sustainable growth.
Stocks Edge Lower After Fed Holds Rates Steady, S&P
500 Briefly Tops 7,000
Equity markets finished modestly lower on Wednesday as the Fed held rates steady, as expected. The S&P 500 briefly reached 7,000 for the first time before pulling back. Sector leadership was mixed, with energy and technology stocks leading gains, while interest-rate-sensitive real estate companies lagged. Internationally, Asia finished higher overnight, while Europe traded lower. The U.S. dollar advanced against major currencies, likely supported by comments from Treasury Secretary Scott Bessent that the U.S. will not intervene to support the Japanese yen. The Federal Open Market Committee concluded its January meeting by maintaining the federal funds target range at 3.5%–3.75%, noting stabilization in the unemployment rate while inflation remains elevated. After three consecutive rate cuts in late 2025, the Fed appears positioned to adopt a more patient stance going forward.
Nigerian Stocks Retreat as Broad-Based Selloffs Push Market Down 0.33%
The Nigerian equity market closed in negative territory today, as key market performance indicators (the NGX-ASI and Market Capitalization) both declined by 0.33%. The pullback reflected continued cautious sentiment and sustained sell-offs in some medium and large cap stocks, with notable laggards including May & Baker, First HoldCo, MTNN, UBA, Ikeja Hotel, and International Breweries. Consequently, the All-Share Index fell by 549.44 points to close at 165,164.38, while Market Capitalization dropped by ₦351.75 billion to ₦105.74 trillion, as losses were recorded across all major sectors.
