The National Bank of Ethiopia’s (NBE) Monetary Policy Committee has warned that supply shocks resulting from the war in Iran could reverse downward inflation trends. In a statement released today following the committee’s sixth meeting, regulators put the headline inflation rate for February 2026 at 9.7 percent, attributing success in taming inflation to tight monetary policies in place since August 2023, including a cap on bank credit growth. However, the central bank warns that the war in Iran and closure of the Strait of Hormuz could undo progress. The committee urged the NBE board to approve its recommendations for continued tight monetary policy, including keeping credit growth caps in place. It will reconvene in late April to “evaluate whether additional policy measures are required,” according to the statement.

Source: Ethiopian News March 31, 2026 14:25 UTC