Ethiopia’s $464m IMF lifeline lands as inflation rebound tests central bank’s resolve

AI Summary

Ethiopia has received a $464 million disbursement from the IMF after clearing the fifth review, aiming to support its economy amid inflationary pressures driven by ongoing war impacts. The National Bank of Ethiopia faces challenges in maintaining recent gains against inflation rebound risks.

The disbursement confirms Addis Ababa cleared the International Monetary Fund’s fifth review. The test facing the National Bank of Ethiopia is whether a war-driven price spike can be contained before it unravels three years of disinflation gains.