Moroccan central bank keeps benchmark interest rate at 3%

Daba Finance/Morocco keeps benchmark interest rate at 3%

AFRICAN BUSINESS AND ECONOMYDecember 21, 2023 at 11:55 PM UTC

Morocco's central bank has announced that it will maintain its benchmark interest rate at 3% to ensure price stability. The decision was made during the bank's quarterly board meeting.

According to the bank's statement following the meeting, inflation, primarily driven by food prices, is projected to average 6.1% for the current year, a slight decrease from the 6.6% recorded last year. In 2024, inflation is anticipated to further decrease to 2.4%, attributed to an expected decline in the prices of imported goods and the stability of food prices.

Assuming an average cereals harvest, economic growth is expected to improve to 3.4% in the following year, following an expected growth rate of 2.1% for the current year.

Key Takeaways

The central bank foresees an increase in car exports, tourism receipts, and remittances from Moroccans abroad, which will help maintain foreign exchange reserves at $35.8 billion in 2024 and $36.8 billion in 2025, sufficient to cover five months of import needs. Despite an increase in spending on social safety nets, the central bank anticipates a narrowing fiscal deficit, reaching 4.5% of GDP in the next year and 3.9% in 2025, compared to 4.8% in the current year.

Morocco

Inflation

Interest Rate

Consumer Prices

Food Prices