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The Central Bank of Morocco decided to keep the main interest rate unchanged at 2.75%, after expectations indicated a reduction of rates ranging between 0.25% and 0.50%. %.
It comes after the Central Bank of Morocco reversed expectations last June when it cut interest rates by 25 basis points, for the first time since 2020, after noting that all economic indicators were improving, according to the statement issued at the time..
The Bank of Morocco Council considered in its statement that “it is appropriate to maintain the current direction of monetary policy, preferring in light of this to keep the key interest rate unchanged at 2.75%, while continuing to closely monitor the development of the economic and social situation.”».
Morocco’s core inflation rate rose to 2.6% year-on-year in August from 2.1% the previous month, according to data from the High Commission for Planning last Friday..
The general inflation rate also accelerated in August by 1.7% year-on-year, compared to 1.3% in July. The government statistics agency explained that this acceleration in August came after “food prices rose by about 2% and non-food prices by 1.4%.” %».
The general inflation rate recorded since the beginning of the year remains close to the central bank’s target of 2%, and comes after the emergence of unprecedented levels since 2022 for the consumer price index in Morocco, where inflation recorded 6.6% at the time, and decreased to 6.1% last year, driven by rising food and fuel prices, compared to an average inflation of about 1.5% in the past two decades..
Bank Al-Maghrib raised its expectations for the country’s economic growth during the current year to 2.8% from 2.1% expected last March, and it is expected to accelerate to 4.5% next year..
The activities of the industrial and services sectors are expected to grow by 3.8% this year, then 4.1% next year, according to the Central Bank, which considered that “this will be driven by the dynamism of the tourism sector and the increase in household spending in light of the decline in inflation and the planned increases in wages in the public and private sectors.”».
The Central Bank pointed out in a previous statement that the agricultural sector is hostage to climatic conditions, as the expected grain crop is estimated at about 3.12 million tons, which is one of the lowest levels in years, which will cause a decline in agricultural added value by 6.9% this year, before recovering by 8.6% next year..
