The National Bank of Ethiopia kept its key interest rate unchanged at 16% on November 3, 2026, maintaining a restrictive monetary stance to curb persistent inflationary pressures and restore price stability. Policymakers said that although headline inflation eased to 14.9% in September from its previous peak of 15.3% in July, it remains far above the Bank’s single-digit goal. The Bank highlighted persistent price pressures largely driven by supply-side factors, including higher energy costs and the impact of the Middle East conflict. Looking ahead, headline inflation is projected to resume a declining trend but remain in double digits over the next six months. Meanwhile, economic activity continued to show strong momentum in the first quarter of FY2026/27, supported by improvements in industrial production, electricity generation, tourism and exports. source: National Bank of Ethiopia

The benchmark interest rate in Ethiopia was last recorded at 16 percent. Interest Rate in Ethiopia averaged 6.23 percent from 1995 until 2026, reaching an all time high of 16.00 percent in July of 2026 and a record low of 3.00 percent in April of 2002. This page provides - Ethiopia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Ethiopia Interest Rate - values, historical data and charts - was last updated on November of 2026.

The benchmark interest rate in Ethiopia was last recorded at 16 percent. Interest Rate in Ethiopia is expected to be 16.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Ethiopia Interest Rate is projected to trend around 15.00 percent in 2027, according to our econometric models.



Related Last Previous Unit Reference
Interest Rate 16.00 16.00 percent Nov 2026


Ethiopia Interest Rate
In Ethiopia, interest rates decisions are taken by Monetary Committee of the National Bank of Ethiopia (NBE). In July 2024, the NBE moved to an interest-rate based monetary policy regime and adopted the National Bank Rate or NBR. The NBR rate is close to the rate at which banks lend to each other and is somewhat below commercial bank lending rates. Until July 2024, the official rate was the bank’s savings rate.
Actual Previous Highest Lowest Dates Unit Frequency
16.00 16.00 16.00 3.00 1995 - 2026 percent Daily

News Stream
Bank of Ethiopia Leaves Policy Rate at 16%
The National Bank of Ethiopia kept its key interest rate unchanged at 16% on November 3, 2026, maintaining a restrictive monetary stance to curb persistent inflationary pressures and restore price stability. Policymakers said that although headline inflation eased to 14.9% in September from its previous peak of 15.3% in July, it remains far above the Bank’s single-digit goal. The Bank highlighted persistent price pressures largely driven by supply-side factors, including higher energy costs and the impact of the Middle East conflict. Looking ahead, headline inflation is projected to resume a declining trend but remain in double digits over the next six months. Meanwhile, economic activity continued to show strong momentum in the first quarter of FY2026/27, supported by improvements in industrial production, electricity generation, tourism and exports.
2026-11-03
Ethiopia Lifts Key Policy Rate to 16%
The National Bank of Ethiopia raised its key interest rate by 1 pp to 16% on July 13th, 2026, marking the first adjustment since the benchmark was introduced at 15% in mid-2024, aiming to curb price pressures. Inflation accelerated to a ten-month high of 13.4% in May after falling into single digits in December 2025 for the first time in almost a decade, amid the US–Iran conflict. The central bank expects inflation to fall by the end of 2026 but acknowledged that prices are likely to remain elevated in the near term. It also scrapped the 24% credit growth ceiling hat had restricted bank lending since August 2023, when inflation was nearing 30%. Full removal of the cap had been repeatedly delayed until alternative policy tools were in place. A targeted safeguard was introduced alongside the cap's removal to prevent excessive lending. The NBE also reduced banks' foreign exchange transaction commission to 1.5% from 2.5% and eased exporters' surrender requirement to 30% from 50%.
2026-07-13
Ethiopia Leaves Policy Rate Steady at 15%
The National Bank of Ethiopia kept its key interest rate unchanged at 15% during its March 2026 meeting, emphasizing that a tight monetary policy is required as the Middle East conflict has raised upside risks to the inflation outlook. The Committee noted that inflation stood at 9.7% in February, continuing its downward trend and remaining within the single-digit target since December 2025. However, persistent geopolitical tensions continue to push oil prices up, impacting both global and domestic markets. The government has used significant foreign currency reserves to secure fuel imports and has reintroduced subsidies to ease the impact on consumers.
2026-03-31