Morocco’s central bank makes second consecutive cut in key rate to 2.25%

Morocco’s central bank continues its monetary easing policy cutting the benchmark interest rate by 25 basis points to 2.25%, the second consecutive reduction to bolster the economy amid an investment spree ahead of the 2030 World Cup.

The bank said the cut was in line with the expectations for inflation and price stability and necessary to boost economic activity.

The bank expects inflation to oscillate around 2% in 2025 and 2026, after 0.9% last year.

However, global trade tensions and the evolution of the crop yield adds uncertainty to the forecast, the bank said.

Growth is expected to improve from 3.2% in 2024 to 3.9% in 2025 and 4.2% in 2026.

The budget deficit, despite a rise in spending, is expected to shrink from 4.1% in 2024, to 3.9% in 2025 and 3.6% in 2026.

About Khalid Al Mouahidi 4661 Articles
Khalid Al Mouahidi : A binational from the US and Morocco, Khalid El Mouahidi has worked for several american companies in the Maghreb Region and is currently based in Casablanca, where he is doing consulting jobs for major international companies . Khalid writes analytical pieces about economic ties between the Maghreb and the Mena Region, where he has an extensive network