The National Bank of Ethiopia (NBE) has announced it will keep its benchmark interest rate steady at 15 percent while easing the ceiling on credit growth to 24 percent for the 2025/26 fiscal year. The decision was made during the fourth meeting of the NBE’s Monetary Policy Committee (MPC) on September 25, 2025.

The MPC, established under Proclamation No. 1359/2025 to steer the country’s monetary policy, opted to maintain a cautious stance aimed at sustaining progress in reducing inflation. While the base rate remains unchanged, the credit growth limit was raised from 18 percent to 24 percent, following approval by the NBE Board based on the MPC’s recommendation.

According to the committee, the adjustment is a “cautious but necessary” step to balance financial stability with the need to stimulate economic activity. All other monetary policy measures, including reserve requirements for financial institutions, remain unchanged.

The central bank reaffirmed its readiness to use a variety of market-based tools, such as open market operations and foreign exchange interventions, to manage liquidity and maintain monetary stability. The next MPC meeting is scheduled to take place in December 2025.

Source: Capital Newspaper