Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Morocco's Central Bank keeps Key Interest Rate Unchanged at 3%

Tue 19 Mar 2024 | 09:07 PM
Taarek Refaat

The Moroccan Central Bank kept its key interest rate at 3% on Tuesday, saying its monetary policy helps reduce inflation.

Inflation is expected to fall to 2.2% this year from 6.1% last year, the central bank said in a statement following its quarterly board meeting.

It added that growth will decline to 2.1% this year from 3% in 2023 due to drought.

The bank expects grain production in Morocco to decline to 2.5 million tons, compared to 5.5 million last year.

Despite expectations of an increase in revenues from tourism, remittances, and foreign direct investment, the current account deficit will expand to 2.3% of GDP in 2024, compared to 0.6% a year ago, in light of the continued increase in imports over exports.

The bank stated that the fiscal deficit will remain stable at 4.4% this year before shrinking to 4%, pointing to reducing subsidies and increasing tax revenues.