The National Bank of Ethiopia held its benchmark National Bank Rate at 15.00% at its September 2025 monetary policy review, maintaining the tight stance it has carried through the current tightening cycle. At the same meeting, the regulator raised the credit growth target for the 2025/26 fiscal year from 18% to 24%, while stressing that the ceiling had to be calibrated carefully so that faster credit growth would not loosen its tight monetary stance. The decisions, taken at the MPC's meeting on 25 September 2025, were published in an NBE statement on 29 September.
The revised target applies to FY 2025/26, and the Committee said it would revisit the matter at its upcoming meetings.
CREDIT GROWTH TARGET RAISED
Raising the credit growth target to 24% allows commercial banks to expand their loan books faster than was permitted at the start of the fiscal year. The NBE cited moderating inflation, which eased to 13.6% in August 2025, improved liquidity conditions and robust economic activity, while noting that inflation remained above its single-digit medium-term target.
The NBE's next policy review is scheduled for December 2025.