The Monetary Policy Committee (MPC) of the National Bank of Ethiopia has announced that the inflation in Ethiopia has reached the lowest in 5 years. The committee proposes financial policies to be adopted by the NBE Board.
After its meeting on Tuesday, MPC issued a statement claiming that current inflation in Ethiopia is 16.9%. Food inflation remains elevated at 18.5% whereas non-food inflation increased slightly to 14.4%. MPC is aiming at single-digit inflation target. 16.9% is the lowest inflation in Ethiopia in the last 5 years.
The MPC decided to leave unchanged the current National Bank Policy Rate (NPR) of 15 percent in order to reduce the still elevated inflation rate. It recommended the continued use of a credit growth target but with a moderate adjustment in the targeted credit growth rate from 14 percent to 18 percent to provide banks with more more lending room. MPC’s next meeting will be held on March 25, 2025.
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