https://en.sputniknews.africa/20241023/ethiopia-to-maintain-high-interest-rates-to-curb-inflation-amidst-currency-reforms-central-bank-1068829548.html
Ethiopia to Maintain High Interest Rates to Curb Inflation Amidst Currency Reforms: Central Bank
Ethiopia to Maintain High Interest Rates to Curb Inflation Amidst Currency Reforms: Central Bank
Sputnik Africa
The NBE will maintain its tight monetary policy, aiming to bring inflation below 10% by the end of 2025. The bank is implementing these measures alongside... 23.10.2024, Sputnik Africa
2024-10-23T14:37+0200
2024-10-23T14:37+0200
2024-10-23T14:37+0200
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ethiopia
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The Ethiopian central bank plans to keep interest rates high for the rest of the year to manage transitory inflation caused by recent sweeping currency reforms, the governor of the National Bank of Ethiopia (NBE) Mamo Mihretu told the US media.The bank, which adopted an interest-rate based monetary policy framework in July, has seen inflation fall to 17.5% from 29% a year ago. Despite the progress, further price increases are expected, particularly in food prices, the governor pointed out.The government is providing temporary subsidies for essential goods to cushion the impact on the poorest citizens, but these will be phased out as the economy adjusts to the reforms, according to Mihretu.Ethiopia is reportedly concurrently negotiating with lenders and bondholders to reduce its debt burden, with the expectation of reaching an agreement by early next year.
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ethiopia, east africa, economy, sub-saharan africa, central bank, currency, reforms, inflation, finance
ethiopia, east africa, economy, sub-saharan africa, central bank, currency, reforms, inflation, finance
Ethiopia to Maintain High Interest Rates to Curb Inflation Amidst Currency Reforms: Central Bank
Alla Shukanova
Writer / Editor
The NBE will maintain its tight monetary policy, aiming to bring inflation below 10% by the end of 2025. The bank is implementing these measures alongside other reforms including the liberalization of the foreign exchange market, tax increases, and debt restructuring, Mihretu noted.
The Ethiopian central bank plans to keep interest rates high for the rest of the year to manage transitory inflation caused by recent sweeping currency reforms, the governor of the National Bank of Ethiopia (NBE) Mamo Mihretu told the US media.
The bank, which adopted an interest-rate based monetary policy framework in July, has seen inflation fall to 17.5% from 29% a year ago.
Despite the progress, further price increases are expected, particularly in food prices, the governor pointed out.
"We expect inflation pass-through to be limited, temporary and manageable," he said.
The government is providing temporary subsidies for essential goods to cushion the impact on the poorest citizens, but these will be phased out as the economy adjusts to the reforms, according to Mihretu.
Ethiopia is reportedly concurrently
negotiating with lenders and bondholders to reduce its debt burden, with the expectation of reaching an agreement by early next year.
