The National Bank of Ethiopia (NBE), under Governor Eyob, eliminated the 7% minimum interest rate floor on savings deposits in late December 2025, allowing market-driven rates to restore monetary policy credibility amid economic challenges.
In a key policy shift, the National Bank of Ethiopia (NBE) removed the 7% floor on savings deposit interest rates two weeks before January 7, 2026. Announced under Governor Eyob's leadership, this change aims to enhance policy credibility and flexibility by letting rates reflect true economic conditions rather than artificial supports. The move addresses longstanding concerns in Ethiopia's financial sector, potentially boosting trust in deposit-taking institutions as part of broader banking reforms and modernization efforts.
