Morocco Lowers Key Interest Rate by 25bps

The Central Bank of Morocco cut its key interest rate to 2.25% from 2.5% during its March 2025 meeting, bringing borrowing costs back to 2022 levels following similar reductions in June and December of last year.

Despite expectations of a moderate acceleration in inflation, the central bank projects it will remain around 2% over the next two years.

Inflation rose to 2% in January from 0.7% in December 2024.

Meanwhile, economic growth is forecast at 3.9% for 2025 and 4.2% for 2026, up from approximately 3.2% in 2024.

Additionally, policymakers announced a new program aimed at supporting bank financing for very small enterprises, which includes refinancing for participating banks at a preferential rate, set at the key policy rate minus 25 basis points.