Ethiopia Holds Key Rate at 15% Amid High Inflation

Ethiopia's central bank has maintained its benchmark interest rate at 15% as part of efforts to control inflation, which has recently decreased to 15.0% in February from 15.5% in January. The National Bank of Ethiopia aims to achieve single-digit inflation over the medium term but did not specify a timeline for this goal. Despite progress in reducing inflation, officials noted that current rates remain above target levels. The bank's decision reflects a commitment to disinflationary monetary policy until further improvements are observed. Additionally, food inflation has significantly dropped from 31% a year ago to 14.6% in February, indicating some positive trends in pricing. Policymakers remain focused on anchoring inflation expectations and supporting economic stability.