Afla Fikir Episode 182 - School Life

Afla Fikir Episode 182 -  School  Life.

November 6, 2025

Although it was expected that the credit growth ceiling, which had been imposed on the money that banks lend to the economy or release into the market in the form of loans, would be completely lifted in the reported month, it remained in place.

The credit growth ceiling has been decided to be raised from its previous level of 18 percent to 24 percent.

Financial expert Mr. Tilahun Girma says that given the current state of the market, releasing large amounts of credit into the market could cause inflation to worsen.

Mr. Tilahun explains that the National Bank's approach appears to be cautious, and the fact that the credit growth ceiling limit was not lifted will allow some ongoing projects to continue as they are.

Mr. Tilahun Girma, who pointed out the stagnation in the real estate and car markets as an example, said this indicates the scarcity of money supply.

The expert emphasizes that a comprehensive review that does not exacerbate inflation and harm the economy is necessary. He argues that applying the same credit ceiling limit to all sectors is not necessary for Ethiopia.

Financial expert Mr. Tilahun Girma explains that an equal credit system should not exist for those who import goods into the country and those who produce domestically. The reason, he says, is that those who import products from abroad are inflationary, while domestic production not only creates job opportunities but also plays a major role in stabilizing inflation.

On the other hand, the other finance and investment expert, Mr. Merred Fiqre-Yohannes, for his part, stated that although the adjustment made to the credit growth ceiling is not sufficient, it will help to stimulate the market to some extent.

Mr. Merred says they expect this ceiling to be completely lifted after three months and has explained his reasons.