Rabat – Morocco’s central bank, Bank Al-Maghrib (BAM), announced on Tuesday that it will maintain its key policy rate at 2.25%, citing moderate inflation levels and persistent uncertainties weighing on economic prospects.
In a statement following the third quarterly meeting of its Council for 2025, BAM said:
“Taking into account the evolution of inflation at moderate levels and the high uncertainties affecting the economic outlook, the Council has decided to keep the policy rate unchanged at 2.25%, while continuing to strengthen measures aimed at easing financing conditions for businesses, particularly very small enterprises (TPEs).”
The key interest rate, often referred to as the policy or benchmark rate, is one of the central bank’s primary tools for managing monetary policy.
It sets the cost at which commercial banks can borrow money from the central bank, which in turn, influences lending rates across the economy.
When the rate is low, borrowing tends to be cheaper, encouraging businesses and households to take out loans, invest, and spend. Conversely, higher rates make borrowing more expensive, slowing down demand but helping contain inflation.
By keeping the rate steady at 2.25%, BAM is signaling that inflation is under control and that supporting economic activity remains a priority.
For smaller enterprises – which typically face tight financing conditions – a secure and relatively low policy rate allows them to access credit, invest, develop, and weather uncertainties.
The bank stressed that its priority remains to ensure balanced financing conditions in support of economic activity, with a special focus on easing access to credit for smaller firms that face structural difficulties in securing funding.
BAM also added that it will continue to closely observe economic and financial trends and make monetary policy judgments on the basis of new data, adopting a meeting-by-meeting strategy to remain sensitive to any new shocks or risks.
