Ethiopia’s Central Bank Holds Rates Amid Inflation Concerns

Experts caution that tightening monetary policies could hinder business expansion, according to recent reports. The National Bank of Ethiopia (NBE) maintained its benchmark policy interest rate at 16 per cent during its eighth ordinary meeting of the Monetary Policy Committee (MPC) on November 3, 2026.

The NBE's decision reflects its commitment to maintaining a tight monetary stance, aiming to reduce annual inflation below 10 per cent. However, the success of this strategy hinges on how effectively policy changes impact borrowing costs, liquidity in the banking sector, and credit availability for businesses.

A notable figure emphasized that the evaluation of monetary interventions should focus on their economic outcomes rather than solely on adjustments to the benchmark rate.