Ethiopia’s central bank kept its key rate at 15% and raised banks’ annual credit growth ceiling to 24% from 18%, a move aimed at easing liquidity strains without abandoning its disinflation drive.
The Monetary Policy Committee said the ceiling “remains necessary” until inflation returns to single digits, rejecting calls for a full removal. Headline inflation slowed to 13.6% in August, from over 20% a year ago, while non-food inflation held at 15.1% on persistent exchange-rate pressures.
Liquidity conditions have improved, with treasury bill yields edging down and remittance inflows boosting reserves. Still, banks remain stretched by high loan-to-deposit ratios and tax prepayment outflows.
The MPC also pledged to step up open-market operations and FX interventions to anchor the birr and keep money markets stable. It meets again in December 2025.