The National Bank of Morocco kept its monetary policy rate on hold at 2.25 percent at its September 25th 2018 meeting. Policymakers noted a significant rise in the inflation rate in the first half of the year, mainly boosted by higher cost of food products and commodities. The inflation is expected to decelerate in the second half to end the year at an average of 2.1 percent while for 2019 it is expected to return to 1.2 percent. The annual core inflation rate is seen approaching 1 percent in 2018 and 1.2 percent in 2019. The Committee added that the GDP growth slowed to 3.2 percent in the first quarter of the year from a 3.5 percent expansion in the same period of the previous year and it is projected to advance 3.5 percent in 2018 and 3.1 percent in 2019. Interest Rate in Morocco averaged 3.82 percent from 1995 until 2018, reaching an all time high of 7 percent in August of 1995 and a record low of 2.25 percent in March of 2016.
Interest Rate in Morocco is expected to be 2.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Morocco to stand at 2.00 in 12 months time. In the long-term, the Morocco Interest Rate is projected to trend around 1.75 percent in 2020, according to our econometric models.