Monetary Policy Committee Meeting No. 5

As reported by National Bank of Ethiopia

Summary

• The National Bank of Ethiopia published the fifth Monetary Policy Committee meeting outcomes. The MPC met on December 22, 2025; the press release was issued December 30, 2025.
• Key decisions: policy rate held at 15%; credit growth cap maintained at 24% y-o-y; reserve requirement increased to manage excess liquidity. Headline inflation stood at 10.9% in November 2025. The MPC stated tight monetary policy remains 'indispensable' until single-digit inflation is achieved.
• BirrValue review: MPC communications shape expectations for liquidity and interest rates, which affect bank FX pricing and conversion spreads. Diaspora senders should monitor these updates and compare rates before large transfers—policy windows can influence short-term FX availability.