Commercial Bank of Ethiopia (CBE) has announced adjustments to its loan interest rates, effective March 7, 2025. Bank executives cited rising deposit mobilisation costs and the need to align with market standards as key factors influencing the decision, despite successful internal reforms that have reduced operational expenses. Executives noted that these adjustments are crucial for maintaining its competitive edge and ensuring the continued delivery of efficient services to its clientele. In a move to stimulate the agricultural sector, CBE has reduced interest rates on agricultural loans by one percentage point. Long-term agricultural loans now stand at 15.5pc, down from 16.5pc, while medium-term loans have decreased to 14.5pc from 15.5pc. Short-term agricultural loan rates remain at 14pc. Conversely, residential condominium loan interest rates will remain unchanged at 12pc, recognising the financial burden on borrowers. The bank has also adjusted the interest rate differential between government and private borrowers. Commercial loan interest rates, particularly for non-export loans, have seen increases exceeding one percentage point. Notably, short-term import bill advances have risen to 18pc, and long-term loans to microfinance institutions have increased to 15.5pc. Export-related loans have also been adjusted, with short-term pre-shipment and merchandise loans climbing to 12pc. Personal loan rates for employees of foreign currency generating or large-value companies have increased to 13pc. New retail lending rates are now 14pc for mortgages and 15pc for vehicle and personal loans. However, certain long-term personal loan rates remain unaffected.