The National Bank of Ethiopia has removed its temporary credit cap on banks and raised the policy interest rate by one percentage point following a Monetary Policy Committee meeting.
The National Bank of Ethiopia announced the decisions after the latest meeting of its Monetary Policy Committee. The central bank stated that the credit cap had achieved its goal of supporting a shift to market-based policy tools.
It approved the one percentage point policy rate increase while keeping the existing policy corridor at plus or minus three percentage points. The bank also introduced a targeted reserve requirement framework to address risks from excessive credit growth.
In addition, the NBE cut its foreign exchange commission rate from 2.5 percent to 1.5 percent. It reduced the surrender requirement on export proceeds from 50 percent to 30 percent.
The committee said its next meeting is scheduled for the end of September 2026 or earlier if conditions require.
