Morocco’s Central Bank has decided to maintain the key interest rate unchanged at 2.25 percent due to deceleration in food prices and a slowdown of inflation from 2 % on average in the first quarter of this year to 0.7 % in April and 0.4 % in May.
The decision was made by the Bank’s board during its meeting held Tuesday in Rabat after analyzing the national and international economic developments
According to Bank Al-Maghrib’s projections,inflation would hover around 1 % by the end-2025,before settling at 1.8 % in 2026,and core inflation should follow a similar trajectory.
The latest available data show a marked acceleration in the pace of activity in non-agricultural sectors. This momentum is set to continue over the medium term,supported in particular by investment in infrastructure,as part of Morocco’s efforts to mitigate the impact of climate change,and to prepare for hosting major international events by 2030. This significant improvement in non-agricultural growth should bolster the tangible recovery in employment observed over recent quarters,says the Bank in its forecasts.
Morocco’s economic growth is expected to accelerate to 4.6 % this year,before consolidating at 4.4 % in 2026,says Bank Al Maghrib,noting that agricultural value added is expected to increase by 5 % in 2025,based on a cereal harvest estimated by the Department of Agriculture at 44 million quintals,and by 3.2 % in 2026,assuming an average cereal production of 50 million quintals.
For the non-agricultural sectors,growth is likely to hover around 4.5 % in both 2025 and 2026,mainly driven by strong investment momentum in infrastructure.
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