Ethiopia holds rate at 15% as inflation slows, fiscal outlook improves

• Treasury bond directive repealed amid improved fiscal outlook
• Food inflation halves, but headline rate remains above target band

The National Bank of Ethiopia has maintained its key interest rate at 15%, citing easing inflation and decent economic growth. In a statement released Monday, the central bank also extended the 18% cap on bank credit growth through the third quarter and repealed a directive that had required commercial banks to purchase treasury bonds.