Morocco Interest Rate

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.