Ethiopia Leaves Policy Rate Steady at 15%

The National Bank of Ethiopia kept its key interest rate unchanged at 15% during its March 2026 meeting, emphasizing that a tight monetary policy is required as the Middle East conflict has raised upside risks to the inflation outlook.

The Committee noted that inflation stood at 9.7% in February, continuing its downward trend and remaining within the single-digit target since December 2025.

However, persistent geopolitical tensions continue to push oil prices up, impacting both global and domestic markets.

The government has used significant foreign currency reserves to secure fuel imports and has reintroduced subsidies to ease the impact on consumers.