Ethiopia Eyes Record 10% Inflation Rate Next Year With Tight Monetary Policy, Central Bank Chief Says
Ethiopia Eyes Record 10% Inflation Rate Next Year With Tight Monetary Policy, Central Bank Chief Says
"If we achieve that, this will be the first in 10 years in Ethiopia. So obviously it's a delivering result," governor Mamo Mihretu noted at the IMF and World Bank spring meetings in Washington.
For three consecutive years Ethiopia faced high inflation rates of around 30%, but managed to reduce inflation significantly to 13% by March, the official pointed out.
Key outcomes of Ethiopia's monetary reforms, according to the Central Bank governor:
▪a central bank policy rate was introduced to adjust monetary conditions;
▪key interest rates turned positive in real terms for the first time, boosting the economy's investment appeal;
▪reduced inflation enhances economic attractiveness;
▪foreign exchange reserves tripled;
▪exports are set to double, and remittances expected to rise by at least 25%, driven by increased inflows.
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