Building Monetary Transmission in Ethiopia
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.
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Volume/Issue:
Volume 2025
Issue 106
Publication date: July 2025
ISBN: 9798229018777
$15.00
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Topics covered in this book
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Banks and Banking , Inflation , Money and Monetary Policy , Monetary policy transmission , monetary policy frameworks , monetary policy effectiveness , interest-rate based monetary policy , Interest rate policy , Waiver of non-observance , Exchange rate adjustments , Resilience and Sustainability Facility , Monetary base , Exchange rates , Monetary policy frameworks , Inflation targeting , Market interest rates , Monetary transmission mechanism , Inflation , Central bank policy rate , Open market operations , Interbank rates
Summary
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.
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