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Morocco’s central bank maintains key interest rate at 2.25% amid economic uncertainties
Morocco’s central bank, Bank Al Maghrib (BAM), has decided to keep its benchmark interest rate unchanged at 2.25%, signaling a cautious approach amid significant uncertainties in both domestic and global economic conditions. The decision reflects the bank’s commitment to balancing economic growth with price stability.
Inflation under control, non-agricultural growth accelerates
During its second quarterly meeting of 2025 in Rabat, BAM’s board announced that inflation levels remain consistent with medium-term price stability objectives. The decision to hold rates steady comes as non-agricultural sectors in Morocco show solid growth momentum, offsetting challenges in other areas of the economy.
In a statement, BAM highlighted that “the evolution of inflation at levels consistent with medium-term price stability, coupled with the tangible acceleration of non-agricultural growth and stabilization of expectations, justifies maintaining the key interest rate at 2.25%.” However, officials noted the persistence of strong uncertainties in Morocco’s economic outlook and in developing economies more broadly.
Focus on financing for smaller businesses
The central bank emphasized its ongoing monitoring of monetary policy transmission, particularly regarding the effects of recent interest rate adjustments on financing conditions for very small, small, and medium-sized enterprises (SMEs). These businesses remain central to Morocco’s economic expansion goals and are a key focus for policymakers.
BAM indicated that monetary policy decisions will continue to be assessed on a meeting-by-meeting basis. Future adjustments will rely on the latest available economic data and evolving market conditions.
Navigating a fragile global economy
The decision to keep rates steady comes as Morocco grapples with a complex global economic scenario marked by persistent inflationary pressures and uncertain growth prospects. While the central bank’s measured stance aims to support economic growth, it also seeks to safeguard price stability, a critical factor for investor confidence and business planning.
Investors and businesses, particularly SMEs dependent on bank financing, are closely watching Morocco’s monetary policy. BAM’s approach underscores its careful balancing act as it navigates domestic and global challenges while fostering sustainable economic development.