FX.co ★ Bank of Ethiopia Leaves Policy Rate at 16%

The National Bank of Ethiopia left its key interest rate unchanged at 16% on November 3, 2026, maintaining a restrictive monetary policy stance in response to ongoing inflationary pressures. Policymakers noted that although headline inflation eased to 14.9% in September from a peak of 15.3% in July, it remains well above the Bank’s single-digit target. The Bank attributed the persistent price pressures primarily to supply-side factors, including higher energy costs and the economic fallout from the conflict in the Middle East. Looking ahead, headline inflation is expected to continue trending downward but to remain in double digits over the next six months. At the same time, economic activity remained robust in the first quarter of FY2026/27, supported by stronger industrial production, increased electricity generation, and solid gains in tourism and exports.