The Central Bank of Morocco has lowered its key interest rate to 2.25%, matching rates from 2022. Despite an increase in inflation to 2%, projections indicate it will stabilize around this figure in the coming years. Economic growth is anticipated at 3.9% for 2025 and 4.2% for 2026, supported by new financing initiatives for small enterprises.
In its meeting held in March 2025, the Central Bank of Morocco has reduced its key interest rate to 2.25%, down from 2.5%. This decision restores borrowing costs to levels experienced in 2022, following similar cuts in June and December of the previous year. Such a move reflects the bank’s response to evolving economic conditions.
The central bank anticipates a slight increase in inflation, projecting it to stabilize around 2% over the next two years. Inflation rates have risen to 2% in January 2025, a notable increase from December 2024’s rate of just 0.7%. This upward trend in inflation, while moderate, is being closely monitored by economic planners.
Economic growth estimates for Morocco have been adjusted, with projections indicating a growth rate of 3.9% for 2025 and 4.2% for 2026. This marks a significant increase compared to the approximate 3.2% growth recorded in 2024. These forecasts suggest a positive outlook for Morocco’s economic recovery and expansion in the coming years.
In addition to interest rate adjustments, the Moroccan policymakers introduced a new initiative aimed at bolstering financial support for very small enterprises. This program includes provisions for refinancing participating banks at a preferential rate, specifically established at the key policy rate minus 25 basis points, thereby enhancing access to capital for smaller businesses.
The Central Bank of Morocco’s decision to lower the key interest rate signals its proactive stance in managing economic growth and inflation. With projections of steady inflation and improved growth rates, coupled with innovative support programs for small enterprises, the bank is fostering an environment conducive to economic stability. These measures are critical in navigating the challenges posed by current economic dynamics.
Original Source: www.tradingview.com
