The National Bank of Ethiopia (NBE) has decided to hold its key interest rate steady at 15 percent while easing the credit growth ceiling to 24 percent for the 2025/26 fiscal year. This decision was announced following the fourth meeting of the NBE’s Monetary Policy Committee (MPC) on September 25, 2025
The MPC, tasked with guiding the country’s monetary policy under Proclamation No. 1359/2025, opted to maintain a prudent stance aimed at continuing the reduction of inflation. While the base rate remains unchanged, the credit growth limit has been raised from 18 percent to 24 percent, a move approved by the NBE Board after the MPC’s recommendation.
The committee emphasized that increasing the credit ceiling at this time is a cautious but necessary step to support financial stability and sustain the gains made in curbing inflation. Other monetary policy tools and requirements for financial institutions, including reserve requirements, were kept unchanged.
The NBE further indicated its readiness to employ a full range of market-based instruments, including open market operations and foreign exchange interventions, to manage monetary conditions effectively. The next MPC meeting is scheduled for December 2025.
