Morocco Holds Key Rate at 2.25%

The National Bank of Morocco left its benchmark interest rate steady at 2.25% during its regular meeting on December 16, 2025, marking the third consecutive hold. Policymakers said the current stance remains appropriate amid ongoing global economic uncertainty and domestic weather risks. They noted that inflation continues to evolve at low levels, driven in particular by the improved supply food products. The annual inflation rate in Morocco slowed to 0.1% in October 2025, the lowest since March 2021, down from 0.4% in September. Inflation is expected to gradually rise toward the price stability objective, from 0.8% this year to 1.3% in 2026 and 1.9% in 2027. Regarding domestic activity, the Board noted strong performance in non-agricultural sectors and signs of labor-market recovery, with momentum expected to persist over the medium term, supported by investment. Economic growth is projected to reach 5% this year and average 4.5% over the next two years.

The National Bank of Morocco maintained its benchmark interest rate at 2.25% during its regular meeting on September 23rd, 2025, amid persistent global and domestic uncertainties. Policymakers observed that inflation is evolving at moderate levels and expectations remain well anchored. Inflation is still projected at 1% for this year, unchanged from both 2024 and the previous meeting’s forecast, before rising to 1.9% in 2026, up slightly from 1.8% earlier. Growth projections were maintained, with the economy expected to accelerate from 3.8% in 2024 to 4.6% in 2025, before moderating slightly to 4.4% in 2026.

The National Bank of Morocco kept its benchmark interest rate steady at 2.25% during its regular meeting on June 24, following a 25 bps reduction in March. The Board emphasized a continued disinflationary trend and stable inflation expectations alongside accelerating economic activity. Inflation has notably slowed, falling from an average of 2% in Q1 to 0.7% in April and 0.4% in May, mainly on account of slower food prices. Inflation is now projected to average around 1% by the end of 2025, before rising to 1.8% in 2026, with core inflation expected to follow a similar path. Meanwhile, policymakers noted a strong acceleration in non-agricultural activity, driven by infrastructure investment, which is expected to continue over the medium term. Bank Al-Maghrib projects growth to accelerate to 4.6% in 2025 and moderate slightly to 4.4% in 2026, up from previous estimates of 3.9% and 4.2%, respectively.