The Board of the Central Bank of Morocco held the key interest rate at 2.25% in the first quarter of 2026, citing strong economic activity, moderate projected inflation and significant global uncertainty. It had cut the rate by 25 basis points to that level in March 2025 and held it thereafter. Inflation is projected at 0.8% in 2026 before rising to 1.4% in 2027, while economic growth is expected to reach 5.6% in 2026, supported by robust non-agricultural activity, infrastructure investment and an agricultural rebound after exceptionally favorable weather. Lending rates have only partially reflected the previous monetary easing. Higher commodity prices are expected to widen the current account deficit to 3.1% of gross domestic product in 2026, although official reserves should continue strengthening through 2027. The Middle East war, the conflict in Ukraine and U.S. trade policy are increasing uncertainty and upward pressure on commodity prices, particularly energy. The Board will continue to decide meeting by meeting using the latest data and will closely monitor domestic and external conditions, especially developments in the Middle East.
2026-03-17Central Bank of Morocco
Central Bank of Morocco Holds Key Interest Rate at 2.25%
The Central Bank of Morocco held its key interest rate at 2.25%, citing strong economic activity, moderate inflation and significant global uncertainty. It projects growth of 5.6% and inflation of 0.8% in 2026 and will continue to assess policy meeting by meeting.