FX.co ★ Morocco Holds Key Rate at 2.25%

The National Bank of Morocco decided to maintain its benchmark interest rate at 2.25% during its meeting on June 24, following a previous reduction of 25 basis points in March. The Board highlighted the persistence of a disinflationary trend with stable inflation expectations, alongside an uptick in economic activity. Inflation has significantly decreased, dropping from an average of 2% in the first quarter to 0.7% in April and further down to 0.4% in May, primarily due to a reduction in food prices. Looking ahead, inflation is predicted to average around 1% by the end of 2025 and rise to 1.8% in 2026, with core inflation expected to mirror this trajectory. Additionally, it was noted that non-agricultural activity has seen strong growth, fueled by infrastructure investments, a trend that is anticipated to persist in the medium term. Bank Al-Maghrib forecasts economic growth to accelerate to 4.6% in 2025, before slightly easing to 4.4% in 2026, improving from previous estimates of 3.9% and 4.2%, respectively.