The National Bank of Ethiopia Announces the Launch of a New Monetary Policy Framework

The National Bank of Ethiopia Announces the Launch of a New Monetary Policy Framework

The National Bank of Ethiopia has taken a number of policy measures aimed at reducing inflation in a significant and sustained manner.

As part of its primary goal of ensuring low and stable inflation, the NBE has been working towards the modernization of Ethiopia’s monetary policy framework over the past year. Several preparatory measures have been taken, in line with the NBE Medium-term Strategy Plan, to establish a supportive legal, institutional, and technical basis for meeting this objective. Most notably, the NBE’s mandate has been clearly defined to prioritize price stability relative to other goals. In addition, NBE’s technical capacity has been enhanced so as to adopt monetary policy tools that are better in line with modern central bank practices and more consistent with an increasingly dynamic and market-based financial system.

With the above preparatory work now largely complete, the NBE is today announcing the following set of measures to fully implement its new monetary policy framework.