The Central Bank of Morocco has reduced the key interest rate to 2.25% from 2.5%, aligning with borrowing costs from 2022. Inflation is expected to stabilize at 2%, while economic growth is forecasted at 3.9% for 2025 and 4.2% for 2026. A new program to support financing for very small enterprises has also been announced.
In its March 2025 meeting, the Central Bank of Morocco decided to lower its key interest rate from 2.5% to 2.25%. This reduction returns borrowing costs to the levels seen in 2022, following similar cuts made in June and December of the previous year. The move aims to stimulate economic activity in light of current economic conditions.
Despite projections for a moderate rise in inflation, the bank anticipates that it will remain stable at around 2% over the next two years. This follows a rise in inflation to 2% in January, up from just 0.7% in December 2024. The central bank remains cautious about inflation management while simultaneously fostering growth.
The economic outlook shows potential improvement, with growth forecasts at 3.9% for 2025 and 4.2% for 2026, an increase from approximately 3.2% in 2024. These estimates reflect the central bank’s confidence in economic stability and recovery.
Additionally, policymakers have introduced a new initiative to bolster financing for very small enterprises. This program includes refinancing opportunities for participating banks, providing them access to loans at a preferential rate that is 25 basis points below the key policy rate. This initiative is part of a broader strategy to support the growth of small businesses in Morocco.
The Central Bank of Morocco’s recent interest rate cut aims to stimulate the economy while maintaining manageable inflation levels. With inflation projected to stabilize at around 2% and economic growth expected to rise in coming years, the interventions reflect a strategic response to enhance financial support for small enterprises. Overall, these measures indicate a proactive approach to maintaining economic stability and fostering growth.
Original Source: www.tradingview.com
