Morocco’s central bank maintains key rate at 2.75%

Morocco’s central bank maintained its benchmark rate at 2.75% amid decreasing inflation.

The bank said inflation would decrease to 1.3% this year as a result of falling food prices, the main driver for inflation in the country.

Inflation would increase slightly to 2.2% in 2025 as the government negotiates a new wave of price hikes that may trigger demand, it said.

The Bank expects economic growth to improve to 4.4% in 2025, from an expected 2.8% this year, provided Morocco records at least an average harvest of 5.5 million tons of cereals.

The bank, however, said the figures remain highly uncertain citing the impact that geopolitical conflicts could have on international markets and prices as well as the risk of droughts.

The bank expects Morocco’s automotive industry exports to keep growing to 18.7 billion dollars next year, while phosphates and derivatives exports could hit 9 billion dollars.

Likewise, tourism receipts are expected to increase to 11.7 billion dollars in 2025, while remittances from Moroccans abroad are expected to grow to 12.1 billion dollars.