The Central Bank of Morocco held its key interest rate at 2.25% in its final quarterly decision of 2025, judging the level appropriate as inflation remained low but was projected to move gradually toward levels consistent with price stability, while strong non-agricultural activity and investment supported growth amid elevated uncertainty. Over the past year, it cut the rate by 25 basis points to 2.25% in March and held it in June and September. The decline in lending rates to the non-financial sector remained partial. Inflation was projected at 0.8% in 2025, rising to 1.3% in 2026 and 1.9% in 2027, while economic growth was forecast at 5% in 2025 and an average 4.5% over the following two years, with signs of labor-market recovery. The current account deficit was expected to remain below 2% of gross domestic product through 2027, while official reserves were projected to strengthen. Globally, trade tensions eased and the US fiscal deadlock ended, but tariff and geopolitical uncertainty remained high, with growth expected to slow and oil prices to decline. The central bank will continue assessing policy meeting by meeting using the latest data, particularly given international geo-economic tensions and domestic weather risks.
2025-12-16Central 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 low inflation alongside strong non-agricultural activity and investment amid elevated uncertainty. Inflation is forecast at 0.8% in 2025, 1.3% in 2026 and 1.9% in 2027, while growth is projected at 5% in 2025 and an average 4.5% over 2026 and 2027.