The Central Bank of Ethiopia should consider “phasing out” its financing of the government’s budget, according to a new report from the International Monetary Fund.
The fund’s executive board said the tighter monetary policy stance announced by the central bank was necessary to bring inflation down to its target of a single-digit level.
The central bank raised policy rates to 7% in the second half of 2017. Inflation has declined from 14% in June, to 10.6% in November.
This monetary policy
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