Bank Al-Maghrib (BAM) has maintained its key interest rate at 2.25%, signalling continued support for Morocco’s economic recovery amid moderating inflation and promising growth prospects. The announcement came after the central bank’s third quarterly board meeting of 2025, held on Tuesday in Rabat.
In its review of the global economy, BAM highlighted ongoing uncertainties linked to US trade policy, geopolitical tensions, and conflicts in the Middle East and Ukraine. Despite these challenges, the bank noted that the anticipated global slowdown has been less severe than previously expected in June.
Domestically, Morocco’s economic performance remains strong. BAM projects overall growth of 4.6% for 2025, building on a robust 2024. Agricultural output is expected to rise by 5%, supported by an estimated cereal harvest of 41.3 million quintals, while non-agricultural sectors—including infrastructure investment—are forecast to expand by 4.5%, maintaining momentum into 2026.
Inflation in Morocco remains contained, averaging 1.1% over the first eight months of the year. BAM predicts it will stabilise at 1% by the end of 2025 before increasing to 1.9% in 2026. Core inflation, which fell to 1.1% this year from 2.2% in 2024, is expected to return to around 2% next year.
The bank also highlighted the effectiveness of its monetary easing measures, noting that lending rates to the non-financial sector have declined by 59 basis points since June 2024, reflecting the transmission of policy decisions into the wider economy.
While maintaining an accommodative stance, BAM cautioned that uncertainties remain, including potential water stress, climate-related risks affecting agriculture, and the implications of the government’s 2026–2028 three-year budget framework. The central bank reiterated its commitment to closely monitoring these factors to ensure continued economic stability and sustainable growth.
By signalling both confidence in Morocco’s economic resilience and vigilance over emerging risks, Bank Al-Maghrib aims to balance growth support with prudent oversight amid a complex international and domestic environment.
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