IMF pushes for higher interest rate

The International Monetary Fund is set to push the Ethiopian government to raise bank interest rates in view of high inflation, officials said. IMF Resident Representative to Ethiopia Jan Michelson told the Ethiopian Reporter, "The IMF will advise on June 4 the government to raise the interest rates as one of the monetary policy instruments, as it will help sustain the growth registered over the last several years." Hailing Ethiopia for its economic successes, Michelson stressed the government needed now to focus on sustainable economic growth, keeping inflation under control through a tight monetary and fiscal policy. "There is a direct link between fiscal and monetary policy and the interest rate which is purposely kept at very low level as it is part of the development strategy of the country."