Rabat- Bank-Al-Maghrib, Morocco's central bank, said it is maintaining its benchmark interest rate at 2.5 per cent because inflation will remain subdued.
Rabat- Bank-Al-Maghrib, Morocco’s central bank, said it is maintaining its benchmark interest rate at 2.5 per cent because inflation will remain subdued.
The quarterly report by the Bank-Al-Maghreb released on Tuesday has revealed that inflation has reached 1.5 per cent on average in the first two months of 2015, slightly higher than the central bank’s forecast in December when it predicted 1.2 per cent and 1.3 per cent inflation in the first quarter of 2016.
The bank, which cut its interest rate twice by 50 basis points in 2014, said that the country’s current account deficit is expected to drop to about 4 per cent of GDP in 2015, from 5.9 per cent a year earlier boosted by lower energy bills. The central bank’s estimates are based on $60 a barrel of crude oil in the international market.
The country’s economy is expected to grow by 5 per cent in 2015, up from 2.5 per cent in 2014 because of an expansion of agricultural output and a continued improvement in the non-agricultural sector.