The Central Bank of Morocco has decreased its key interest rate to 2.25% following earlier reductions, while projecting inflation to stabilize around 2% and economic growth rates to improve. A new program to support very small enterprises was also announced.
The Central Bank of Morocco has reduced its key interest rate to 2.25%, down from 2.5%, in its March 2025 meeting. This action restores borrowing costs to their 2022 levels and follows prior reductions made in June and December of the previous year. The decision comes amidst expectations of a moderate inflation acceleration, which the central bank anticipates will stabilize around 2% over the next two years.
In January, inflation experienced a significant increase to 2%, up from just 0.7% in December 2024. Concurrently, the economic growth forecast is optimistic, projecting a growth rate of 3.9% for 2025 and 4.2% for 2026, a rise from the estimated 3.2% in 2024.
Additionally, the Moroccan policymakers have introduced a new initiative designed to bolster financial support for very small enterprises. This program encompasses refinancing options for participating banks at a preferential rate, established at the key policy rate minus 25 basis points, thereby incentivizing bank financing for small businesses.
In summary, Morocco’s Central Bank has taken a significant step by lowering the key interest rate, aiming to stimulate economic growth while managing inflation expectations. The introduction of a new support program for very small enterprises underscores the commitment to enhance financial accessibility and encourage business development in the region.
Original Source: www.tradingview.com
