The Moroccan central bank maintains the benchmark interest rate at 2.25%

The Moroccan central bank stated that current borrowing rates were in line with the inflation outlook, thus it maintained its benchmark interest rate at 2.25%.

Following a decline in food costs, the bank predicted that inflation will average 1% in 2025 before slightly increasing to 1.8% the following year, according to a statement released after its quarterly board meeting.

Citing trade restrictions, the effects of violence in some areas, and the performance of the domestic farming sector, the bank stated that the prediction is still veiled in “uncertainty.”

The bank predicted that economic growth would increase from 3.8% in 2024 to 4.6% in 2025 and 4.4% in 2026.

The bank stated that Morocco “should remain limited” in the face of the recent 10% U.S. import duties. Moroccan officials claim that just a small portion of their country’s exports come from trading with the United States.

The central bank predicted that rising phosphate and auto exports would help keep the current account deficit steady at about 2% of GDP in 2025 and 2026.

According to the report, foreign exchange reserves should reach 407 billion dirhams ($44.7 billion) in 2025 and 423.7 billion dirhams in 2026, which would be sufficient to fund import requirements for 5.5 months.

Rising tax receipts are expected to partially offset higher public investment spending, reducing the fiscal deficit from 3.9% of GDP this year to 3.4% in 2026.