Dear Subscriber,

Oil prices rose by 1.25% to $74.57pb after the U.S. Fed’s rate cut.

Brent futures increased by 1.25% to $74.57pb, driven by the 50 basis point interest rate cut by the U.S. Federal Reserve to 4.75%-5.00%. This is the most significant rate reduction since March 2020, aimed at addressing the weakening job market. A dovish monetary policy stance is expected to result in the weakness of the US dollar and the rise in crude oil prices in the near term.

Domestic commodity prices mixed on seasonality and exchange rate pass-through effects

Commodity prices have seen significant shifts, with tomatoes dropping 63% to N22,000 and 5 liters of palm oil falling 12.5% to N7,000 due to oversupply. Meanwhile, rice and flour prices have risen by 19%, driven by exchange rate pressures. In the near term, severe flooding in Borno and rising fuel costs are expected to push commodity prices higher, likely increasing headline inflation, currently at 32.15%, in the coming months.

FDC’s M.D., Mr. Bismarck Rewane, discussed these and other burning economic issues on Channels TV Business Morning.

Click the link  to watch the video.

Enjoy your read!