Morocco’s Central Bank has reduced the key interest rate to 2.25%, bringing it back to 2022 levels. Inflation rose to 2% in January, but is expected to stabilize around this figure. Economic growth is forecasted at 3.9% for 2025 and 4.2% for 2026. A new program to aid very small enterprises has also been announced.
The Central Bank of Morocco has officially reduced its key interest rate from 2.5% to 2.25% as determined in the March 2025 meeting, reinstating borrowing costs to their 2022 levels. This adjustment follows reductions made in June and December of the previous year. Despite a notable rise in inflation, which increased to 2% in January from 0.7% in December 2024, the bank anticipates inflation will stabilize around 2% over the coming two years.
Economic growth in Morocco is projected to be 3.9% for 2025 and 4.2% for 2026, showing an improvement from an estimated growth of approximately 3.2% in 2024. Furthermore, policymakers have introduced a new program to bolster financing for very small enterprises. This initiative comprises refinancing opportunities for participating banks at a favorable rate, which is set at the key policy rate minus 25 basis points.
In summary, the Central Bank of Morocco’s decision to lower the key interest rate reflects efforts to stimulate economic growth amidst rising inflation concerns. With projected growth rates and the introduction of a program to support small enterprises, Morocco aims to enhance its economic landscape significantly.
Original Source: www.tradingview.com
