Morocco Interest Rate

The National Bank of Morocco slashed its benchmark interest rate by 25 bps to 2.50% in its December 2024 meeting, after leaving it unchanged at 2.75% in September. The decision brings borrowing costs to their lowest level since November 2022, given that inflation remains in line with the price stability target and considering the high uncertainty surrounding the medium-term outlook, particularly at the international level. The central bank noted that inflation has remained low and is expected to end the year at an average of 1%, down from 6.1% in 2023, and is projected to remain moderate in the medium term, at 2.4% in 2025 and 1.8% in 2026. The economy is projected to grow by 2.5% this year, down from 3.4% in 2023, due to a prolonged drought, before accelerating to 3.9% over the next two years.