Bank Al-Maghrib held its key interest rate at 2.25% in its second quarterly decision of 2025, citing inflation consistent with its medium-term price stability objective, accelerating non-agricultural growth and anchored inflation expectations, while stressing significant uncertainty. The rate was cut by 25 basis points to 2.25% in March 2025, the third reduction since June 2024. Inflation slowed to 0.4% in May from an average 2% in the first quarter and is projected at around 1% by end-2025 before reaching 1.8% in 2026, while economic growth is forecast to accelerate to 4.6% in 2025 and consolidate at 4.4% in 2026. Bank lending rates to the non-financial sector have fallen by a cumulative 45 basis points since easing began in June 2024. The current account deficit is projected at around 2% of GDP in 2025 and 2026, with official reserves rising to the equivalent of about five and a half months of imports by end-2026. Globally, new US trade policies and conflicts in Ukraine and the Middle East have heightened uncertainty, while slowing growth and declining oil prices are expected to support disinflation. Bank Al-Maghrib will closely monitor the pass-through of recent cuts, particularly to financing conditions for very small, small and medium-sized enterprises, and will decide meeting by meeting based on the latest data.
2025-06-24Central 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 inflation consistent with its medium-term price stability objective, stronger non-agricultural growth and anchored inflation expectations amid significant uncertainty. It forecasts inflation of around 1% in 2025 and 1.8% in 2026, and economic growth of 4.6% and 4.4%, respectively.