Morocco Interest Rate

The National Bank of Morocco cut its benchmark interest rate by 25bps to 2.75% from 3%, marking the first change after four consecutive meetings. The board observed sustained economic activity and a continuing decline in inflation, albeit slower than previously forecasted in March. Annual inflation rate in May 2024 stood at 0.4%, declining sharply from 2.3% at the beginning of the year. Consequently, the underlying inflation trend, averaging 2.1% in early 2024, is expected to remain stable until the end of 2025. Moreover, the 2023 annual national accounts highlighted faster non-agricultural growth and improved household consumption compared to quarterly data. However, the board noted that despite these positive indicators, uncertainty remains high due to ongoing geopolitical tensions, particularly in Ukraine and the Middle East and that it will continue to monitor economic and inflationary trends both domestically and internationally.