Rabat - Morocco's central bank held its benchmark interest rate at 2.25 percent forecasting inflation would stay in line with its price stability objective.
Rabat – Morocco’s central bank held its benchmark interest rate at 2.25 percent forecasting inflation would stay in line with its price stability objective.
“Considering that inflation forecast is consistent with the objective of price stability and in view of the medium-term economic outlook, the Board judged that the current level of 2.25 percent for the key rate continues to ensure appropriate monetary conditions, and decided to keep it unchanged”, the central bank governor, Abdellatif Jouahri, said at a press conference following the board’s quarterly meeting.
The Board also noted that inflation fell down from 1.9 percent on average in the third quarter to 1.6 percent in October, mainly due to the slowdown in volatile food prices.
Bank Al-Maghrib revised its growth outlook for 2016 down to 1.2 percent, with a 9.6 percent decline in the agricultural added value and a 2.6 percent deceleration in the nonagricultural GDP.
In the medium term and assuming an average crop year in the next two years, growth is expected to accelerate to 4.2 percent in 2017 and 3.7 percent in 2018.
Nonagricultural GDP would accelerate to 3.4 percent and 3.7 percent in 2017 and 2018, respectively, driven by stronger revenues, particularly from the agricultural sector, and accommodative monetary conditions.