The Board of the Central Bank of Morocco cut the key rate by 25 basis points to 2.25% in its first-quarter decision, the second consecutive reduction and third since June, as inflation is expected to remain consistent with price stability and to strengthen support for economic activity and employment. The central bank will also refinance participating banks at the key rate minus 25 basis points under a new program supporting financing for very small enterprises. Inflation averaged 0.9% in 2024 and is projected to remain around 2% over the next two years, while economic growth is forecast to accelerate from 3.2% in 2024 to 4.2% in 2026, primarily reflecting infrastructure investment, and credit growth is expected to strengthen. The current account deficit is projected to widen in 2025 before narrowing in 2026, while official reserves should rise and maintain import cover above five months. Globally, growth is expected to slow amid trade-policy and geopolitical uncertainty, while lower energy prices and cooling labor markets should further ease inflation. The central bank will continue to assess decisions meeting by meeting using the latest data.
2025-03-18Central Bank of Morocco
Central Bank of Morocco Cuts Key Rate by 25 Basis Points to 2.25%
The Central Bank of Morocco cut its key rate by 25 basis points to 2.25%, its second consecutive reduction and third since June, as inflation is expected to remain consistent with price stability. It will also refinance banks participating in a new financing program for very small enterprises at 25 basis points below the key rate.