Central Bank Loosens Credit Reins But Stops Short of Bold Overhaul
Eyob Tekalegn (PhD) had been in the Governor's chair for only weeks when, on September 29, 2025, the Monetary Policy Committee chairs loosened the banking industry's credit-growth ceiling. From the new fiscal year, banks may expand loans by up to 24pc, six percentage points more than before.
The move nudged a wary industry, whose lenders are already juggling thin liquidity and scarce foreign currency, toward a slightly faster gear. It is, though, more a tactical adjustment than a monetary revolution, a gesture that favours stability over stimulus while the economy wrestles with stubborn mac...