The Central Bank of Morocco cut its key interest rate to 2.25%, restoring it to 2022 levels after previous reductions. Inflation is expected to stabilize around 2% despite a recent increase. Economic growth is projected at 3.9% for 2025 and 4.2% for 2026. A new program for small enterprises includes refinancing for banks at a reduced rate.
In March 2025, the Central Bank of Morocco reduced its key interest rate from 2.5% to 2.25%. This adjustment restores borrowing costs to levels seen in 2022 and follows similar cuts made in June and December of the previous year. Despite a forecast for moderate inflation, which is projected to stabilize around 2% for the next two years, inflation increased to 2% in January 2025 from just 0.7% in December 2024.
The economic outlook for Morocco shows growth projections of 3.9% for 2025 and 4.2% for 2026, an improvement from a growth rate of around 3.2% in 2024. In addition to the interest rate cut, the central bank has introduced a new initiative aimed at enhancing bank financing for very small enterprises. This program includes refinancing for participating banks at a favorable rate, calculated as the key policy rate minus 25 basis points.
The Central Bank of Morocco’s recent decision to lower the key interest rate by 25 basis points reflects a strategy to manage inflation and stimulate economic growth. With inflation anticipated to stabilize and growth projected to accelerate, the new financing program for small enterprises further supports economic activity and bolsters the financial stability of smaller businesses.
Original Source: www.tradingview.com
