Rabat — Morocco’s central bank, Bank Al Maghrib (BAM), decided Tuesday to maintain its key interest rate unchanged at 2.25%, citing inflation levels consistent with medium-term price stability goals and accelerating non-agricultural growth.
BAM board, meeting in Rabat for its second quarterly session of 2025, announced the decision following careful consideration of economic indicators and future uncertainties.
“Taking into account the evolution of inflation at levels consistent with the medium-term price stability objective, the tangible acceleration of non-agricultural growth, and the stabilization of expectations, the board decided, given the strong uncertainties surrounding the outlook, to keep the key interest rate unchanged at 2.25%,” the central bank said in a statement.
The decision aligns with a cautious approach amid what officials describe as significant uncertainties in the economic forecast in Morocco and developing economies.
The bank further pointed out that inflation has remained within acceptable parameters aligned with their price stability targets, while the country’s non-agricultural sectors have shown notable growth momentum.
The central bank indicated it will continue monitoring the transmission effects of its recent interest rate cuts, particularly focusing on how these changes impact financing conditions for very small, small, and medium-sized enterprises. This sector has been a key focus for Moroccan policymakers seeking to stimulate broader economic growth.
BAM further said that its future monetary policy decisions will be made on a meeting-by-meeting basis, with each determination based on the most current available economic data and market conditions.
The decision to hold rates steady comes as Morocco, like many developing economies, navigates a complex global economic environment marked by persistent inflationary pressures and uncertain growth prospects. The central bank’s measured approach suggests officials are balancing the need to support economic expansion while maintaining price stability.
Morocco’s monetary policy stance will continue to be closely watched by investors and businesses, particularly small and medium enterprises that rely heavily on bank financing for their operations and expansion plans.
Read also: BAM: One in Four Moroccan Businesses Uncertain About Future Industrial Trends
