In this week's edition:
• U.S. Equities Extended Gains, As Technology Stocks and Optimism Over the U.S.-Iran Agreement Offset Concerns About a Hawkish Federal Reserve.
• Gold Prices Fell 1.51% W/W, As Hawkish Fed Signals Outweighed Support from the U.S.-Iran Peace Agreement.
• Ghana’s Treasury Auction Undersubscribed (20.24%) Amid a Sharp Rise in Yields Across the Curve.
• GSE Extends Winning Streak to Three Weeks; GSE-CI Rises 2.27% w/w to 68.40% YTD, While GSE FI Rose 2.03% W/W to 80.65% YTD.
Kindly click to view the full report: Global Market Update - June 22, 2026
AROUND THE GLOBE
• Fed Holds Rates Steady, Signals Higher Inflation Outlook
The Federal Reserve left its policy rate unchanged at 3.50%–3.75% on June 17, 2026, marking a fourth consecutive hold and aligning with market expectations, in the first meeting under new Chair Kevin Warsh. Updated projections revealed a divided policy outlook, with 9 officials expecting at least one rate hike, 6 seeing at least two, while another 9 anticipate no change or potential cuts, alongside a slight downgrade in 2026 GDP growth (2.2% vs 2.4% in March). At the same time, PCE inflation forecasts were revised sharply higher to 3.6% for 2026 (from 2.7%) and 3.3% for 2027 (from 2.7%), underscoring persistent price pressures despite solid economic activity and labour market resilience.
• BoE Holds Rates Steady Amid Persistent Uncertainty
The Bank of England held its Bank Rate at 3.75% on June 18, 2026, with a 7–2 vote split, as policymakers balanced easing inflation against ongoing energy related uncertainty tied to Middle East tensions. While CPI inflation has moderated to 2.8%, two members voted for a 25bps hike to 4.0%, citing risks of renewed inflation pressures. The Bank noted that although energy prices have eased from recent highs, they remain elevated, with potential second round effects on wages and prices posing risks if pressures persist.
• US Import Prices Rise Sharply Above Expectations
U.S. import prices increased by 1.9% m/m in May 2026, following an upwardly revised 2.0% gain in April, the strongest rise in four years and significantly above expectations of 1.0%. The surge was driven by a sharp jump in fuel and lubricant prices (+12.5%), reflecting higher global energy costs linked to Middle East supply disruptions, while non fuel import prices rose by 0.8%, supported by gains across capital goods, industrial supplies, and consumer goods.
• Euro Area Inflation Confirmed at 2½ Year High
Euro area inflation was confirmed at 3.2% in May 2026, unchanged from April and the highest since September 2023, remaining well above the ECB’s 2.0% target. The increase was driven by a sharp rise in energy prices (+10.8%), alongside faster growth in services (3.5% vs 3.0% in April 2026) and non energy industrial goods (0.9% vs 0.8% in April 2026), although food, alcohol, and tobacco inflation eased to 1.9% from 2.4% m/m. Core inflation also strengthened to 2.6% from 2.2% in April, reflecting broadening price pressures.
• China Keeps LPR Unchanged for 13th Straight Month
The People’s Bank of China held its key lending rates steady for a 13th consecutive month on June 21, 2026, with the one year LPR at 3.0% and the five year LPR at 3.5%, in line with market expectations. The decision reflects a cautious stance amid mixed economic signals, including weaker retail sales, persistent property sector weakness, and ongoing global uncertainties linked to the Middle East conflict.
• U.K. Inflation Holds Steady Below Expectations
U.K. annual inflation remained unchanged at 2.8% in May 2026, below market expectations of 3.0% and holding at its lowest level since March 2025. The stability reflected softer price pressures in housing and household services (2.7% vs 3.0% in April 2026), alongside a further slowdown in food and non alcoholic beverages (2.2% vs 3.0% in April 2026), which dropped to their lowest level since December 2024.
GHANA
BoG Balance Sheet Expands as Assets Climb in March
The Bank of Ghana’s balance sheet strengthened in March 2026, with total assets rising to GH¢321.38 billion, up from GH¢310.58 billion in February, representing a 3.5% month on month increase and a 2.6% year on year gain. The expansion was driven largely by a sharp increase in foreign assets, which jumped to GH¢128.0 billion from GH¢109.48 billion, alongside a significant rise in foreign securities holdings to GH¢81.56 billion, reflecting stronger investment in external assets. Despite remaining slightly below March 2025 levels (GH¢129.73 billion), the improvement signals a recovery in the Bank’s external position, supported by continued gold accumulation and diversified reserve investments.
AFRICA
Nigeria Inflation Rises to Six Month High
Nigeria’s annual inflation accelerated to 15.93% in May 2026, up from 15.69% in April, marking a six month high and extending the recent upward trend. The increase was driven by a sharp pickup in food inflation (17.8% vs 16.6% in April 2026) and transport costs (17.1% vs 16.0% in April 2026), reflecting ongoing pass through effects from earlier fuel price shocks, while price pressures remained elevated across health, hospitality, and personal services, though easing slightly in some categories. Core inflation also climbed to 16.82% from 15.86% in April, highlighting broader underlying pressures. On a monthly basis CPI rose by 1.75%, slowing from 2.13% in April, indicating a modest moderation in momentum.
• South Africa Inflation Accelerates but Misses Expectations
South Africa’s annual inflation rose to 4.5% in May 2026, up from 4.0% in April, marking the fastest pace since July 2024, though slightly below expectations of 4.7%. The increase was driven mainly by a sharp rise in transport costs (9.4% vs 4.9%) and housing and utilities (5.3% vs 5.2%), reflecting higher fuel prices and electricity tariffs, while pressures also picked up in restaurants and hotels (5.8% vs 5.2% in April 2026), even as food inflation eased to 1.9% from 2.9%. Core inflation edged higher to 3.8% from 3.6%. On a monthly basis CPI rose by 0.7%, slowing from a 1.1% increase in April.
Sources: Bloomberg, Reuters, Trading Economics
