Building Monetary Transmission in Ethiopia
July 30, 2025
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This Selected Issues Paper reviews Ethiopia’s transition to an interest-rate based monetary framework. For this framework to be effective, monetary transmission—the process through which policy rate changes affect inflation and economic activity—must function reliably. Achieving this, requires a clear, well-communicated policy framework, strong analytical capacity, and continued efforts to address structural features that may hamper transmission.
Subject: Central bank policy rate, Exchange rates, Financial services, Foreign exchange, Inflation, Interbank rates, Monetary policy, Monetary policy frameworks, Prices
Keywords: building monetary policy transmission, Central bank policy rate, Exchange rates, Inflation, Interbank rates, interest-rate based monetary policy, monetary policy effectiveness, monetary policy frameworks, Monetary policy transmission, MPC meeting statement, paper reviews Ethiopia's transition, rate change, Sub-Saharan Africa
Pages:
18
Volume:
2025
DOI:
Issue:
106
Series:
Selected Issues Paper No. 2025/106
Stock No:
SIPEA2025106
ISBN:
9798229018777
ISSN:
2958-7875
