The Bank of Morocco maintains the interest rate at 3% and forecasts a slowdown in inflation

The Council of the Bank of Morocco decided today, Tuesday, to maintain the current key rate at 3%.

The Council considered that the current interest rate remains appropriate to reinforce the stability of inflation forecasts and support the return of inflation to levels consistent with the price stability objective. The Council added that it expects a gradual improvement in non-agricultural growth, supported in particular by public investments, while agricultural production remains affected by repeated years of drought and worsening water stress.

Regarding inflation, the Council highlighted that after reaching a peak of 10.1% in February 2023, it began to decline to return to 3.4% in December, thus closing the year 2023 with an average of 6.1%, after 6.6% in 2022, forecasting that inflation will continue to slow to 2.2% this year and to 2.4% in 2025.

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