In this week's edition:
· Major global equity markets fell as the Federal Reserve held interest rates steady
· Gold Prices Plunged By 1.87% w/w After Record High Amid Investor Profit-Taking
· Ghana’s Treasury Auction Was Oversubscribed by 75.88%, Hitting a Ten-Week Streak as Long-End Demand Persists; Yields Decline Sharply Across the Curve
· Ghanaian Equities Ended the Week in the Green as the GSE-CI Rose 0.33% W/W, Lifting YTD Returns To 2.69%, Financials Led the Charge
Kindly click to view the full report: Global Market Update - February 2, 2026
AROUND THE GLOBE
· Fed Holds Rates Steady at January 2026 Meeting
o The US Federal Reserve kept the federal funds rate unchanged at 3.5%–3.75% in January 2026, in line with expectations, after three consecutive rate cuts in 2025. Governors Stephen Miran and Christopher Waller dissented, favouring an additional 25bps cut. Policymakers noted solid economic growth, subdued job gains, stabilizing unemployment, and inflation that remains somewhat elevated. Chair Jerome Powell said the economy is entering 2026 on a firm footing and that current rates are appropriate, stressing that future decisions will remain data dependent.
· Eurozone GDP Outperforms Forecasts in 2025
o The Eurozone economy grew by 1.5% in 2025, accelerating from 0.9% in 2024 and surpassing the European Commission’s 1.3% forecast. Growth was driven by resilient household consumption supported by easing inflation and lower borrowing costs, a surge in exports to the US ahead of anticipated tariffs, and stronger-than-expected investment in equipment and intangible assets. Looking ahead, growth is projected to ease to 1.2% in 2026 amid geopolitical and trade uncertainties, before improving modestly to 1.4% in 2027.
· US Producer Inflation Accelerates in December
o US producer prices rose more than expected in December 2025, with headline PPI increasing by 0.5% month-on-month, the largest gain in three months and above forecasts of 0.2%. The rise was driven by a rebound in services prices, while goods prices were flat. Core PPI surged by 0.7%, its biggest increase since July (0.8%). On an annual basis, headline producer inflation held at 3%, while core inflation accelerated to 3.3%, both exceeding expectations and signalling persistent upstream price pressures.
· Bank of Canada Keeps Policy Rate Steady Amid Trade Uncertainty
o The Bank of Canada held its overnight rate at 2.25% at the January 2026 meeting, in line with expectations and prior guidance. Policymakers said current settings remain appropriate under the baseline outlook but flagged rising uncertainty from renewed US tariff threats, which could necessitate policy adjustments in either direction. Growth projections were broadly maintained, with GDP expected to exceed 1% in 2026, while inflation is seen hovering near the 2% target.
· China Manufacturing PMI Slips Back into Contraction
o China’s official Manufacturing PMI fell to 49.3 in January 2026 from 50.1, missing expectations and signalling renewed contraction in factory activity. Weaker demand dragged new orders back into contraction, while output growth slowed and foreign sales deteriorated further. Employment and purchasing activity remained subdued, reflecting cautious business sentiment. Cost pressures intensified as input prices rose at a faster pace, while selling prices returned to expansion.
- GHANA
· BoG Delivers a 250 bps Policy Rate Cut to 15.5%
o The Bank of Ghana reduced its policy rate by 250 basis points to 15.5% at its first meeting of 2026, the lowest level since February 2022 (14.5%). Governor Johnson Asiama noted that headline inflation is expected to converge toward the 8.0% medium-term target, while economic growth remains strong. Inflation eased to 5.4% in December, the 12th consecutive month of disinflation. The central bank reaffirmed its commitment to safeguarding macroeconomic stability and supporting sustainable growth.
- AFRICA
· South Africa Holds Repo Rate at 6.75% Amid Easing Inflation
o The South African Reserve Bank (SARB) kept its key repo rate unchanged at 6.75% on January 29, 2026, in line with expectations, following a 25 bps cut in November. The decision was split, with two members favouring a further cut. While inflation prospects are improving, policymakers remain cautious due to electricity tariff risks and global uncertainty. SARB lowered its 2026 inflation forecast to 3.3% and expects inflation to reach the 3% target by 2028, with gradual rate cuts projected ahead.
Sources: Bloomberg, Reuters, Trading Economics
