Morocco's Central Bank Cuts Interest Rates to 2.75%

The Central Bank of Morocco cut its key interest rate by 25 basis points to 2.75% on Tuesday, saying the decision was in line with lower inflation.

The bank said in a statement following a quarterly board of directors meeting that inflation is expected to decline to 1.5% this year, from 6.1% last year, due to the decline in external inflation pressures.

In a statement, the Board of the Bank of Morocco expected that inflation would rise to 2.7% in 2025.

Regarding economic growth, the Bank of Morocco expected that the growth of the national economy would reach 2.8% in 2024 before accelerating to 4.5% in 2025.

It expected inflation to rise to 2.7% with the beginning of the gradual reduction of subsidies directed to domestic gas.

The bank explained that the decline in agricultural output would reduce economic growth to 2.8% this year from 3.4% last year, adding that growth is expected to rise to 4.5% next year if the grain harvest season improves.

The current account deficit is expected to expand to 1.7% of GDP this year, compared to about 0.6% last year, and attributed this increase to the rise in energy imports.