The Monetary Policy Committee (MPC) of the CBE raised on Thursday the overnight deposit rate, overnight lending rate, and the rate of the main operation to 11.25 percent, 12.25 percent, and 11.75 percent, respectively. The MPC also raised the discount rate by 200 basis points to 11.75 percent.

"The MPC determined that hiking policy rates is required to control inflationary pressures while maintaining medium-term price stability." The committee explained, "Monetary policy measures are used to anchor inflation expectations, restrict demand-side pressures, and second-round effects coming from supply shocks that may lead to deviations from inflation targets."

It also expected that the elevated annual headline inflation rate would be temporarily tolerated relative to the CBE’s target of seven percent (±2 percent) on average during the fourth quarter of 2022.