Ethiopia's National Bank of Ethiopia (NBE) adopts interest rate-based monetary policy with a 15% National Bank Rate (NBR).
The National Bank of Ethiopia (NBE) has shifted to an interest rate-based monetary policy regime, aiming for low, stable inflation. The new approach involves using the National Bank Rate (NBR) as the primary instrument, initially set at 15%. However, economist Ayele Gelan questions the policy's evidence base, urging the NBE to establish a Monetary Policy Committee for more effective decision-making based on Ethiopia's current economic reality.
July 16, 2024
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