Ethiopia raises rates for first time in two years
Move comes as NBE removes lending cap on commercial banks
The National Bank of Ethiopia (NBE) raised its key interest rate by one percentage point to 16% on July 13, marking the first adjustment since the central bank moved to an interest rate-based framework.
Over the past two years, Ethiopia has embarked on reforms aimed at building a financial sector governed by market forces, rather than administrative directives. In July 2024, the NBE adopted a monetary policy framework based on interest rates – its previous approach having involved setting targets
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