Morocco’s central bank has decided to keep its key interest rate unchanged at 3% to ensure the price stability, affirming that it will continue to closely monitor economic conditions and inflationary pressures, both domestically and globally.
The decision was made Tuesday by the Bank’s Board during its quarterly meeting which analyzed domestic and global economic developments, as well as the Bank’s medium-term macroeconomic projections.
Inflation is seen dropping to 6.1% this year and 2.4% next year. In 2022, drought and imported inflation propelled inflation to 6.6%.
The Bank forecast growth at 3.2% in 2024 and a cereals harvest of 7 million tons. Last year, with a harvest of 5.5 million tons, Morocco’s growth rate was limited to 2.7% in 2023.
Speaking to the press after the meeting, central bank governor Abdellatif Jouahri said the country was considering the next step in the dirham currency reform to allow for a greater fluctuation against the Euro and the Dollar.
He said the bank plans to use 8% of its hard currency reserve to finance green projects. In 2024 and 2025, foreign exchange reserves would cover 5 months and 16 days of imports.