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# Bank Al-Maghrib cuts Morocco's key rate by 25 basis points to 2.25%
- URL: https://www.theglobalbanker.com/bank-al-maghrib-cuts-morocco-s-key-rate-by-25-basis-points-to-2-25/
- Published: 2025-03-18T18:00:00.000Z
- Updated: 2026-10-29T09:37:18.000Z
- Description: Morocco's central bank lowered its benchmark rate on 18 March 2025 in its second consecutive reduction, after inflation averaged 0.9% in 2024, and forecast inflation of around 2% over the next two years.
- Author: TGB Editorial Team
- Tags: Central Banks, MENA, #archive

Bank Al-Maghrib (BAM) lowered Morocco's key policy rate by 25 basis points to 2.25 per cent on 18 March 2025, following the quarterly meeting of its Board in Rabat. The central bank said the decision was intended to support economic activity while ensuring price stability, given the expected path of inflation.

The reduction was BAM's second consecutive cut, following a 25 basis point reduction to 2.50 per cent in December 2024\. The Board based its decision on an analysis of domestic and international economic developments, recent public policies and the bank's medium-term macroeconomic projections.

#### INFLATION SEEN AROUND 2%

Inflation slowed significantly in 2024 after two years at high levels, averaging 0.9 per cent. BAM projected that it would accelerate while remaining moderate, running at around 2 per cent over the next two years. Core inflation stood at 2.2 per cent in 2024 and is expected to evolve around 2 per cent over the medium term.

#### GROWTH OUTLOOK

The central bank estimated Morocco's economic growth at 3.2 per cent in 2024 and projected that it would rise to 3.9 per cent in 2025 and 4.2 per cent in 2026\. Non-agricultural growth was estimated at 4.2 per cent in 2024 and is expected to remain close to that level in the medium term, driven mainly by infrastructure investment.

Agricultural value added contracted by 4.7 per cent in 2024 because of unfavourable weather. Based on a preliminary cereal harvest estimate of 35 million quintals, BAM expects agricultural value added to rise by 2.5 per cent in 2025 and by 6.1 per cent in 2026, assuming a return to an average harvest of 50 million quintals. The Board also noted the government's commitment to further consolidating macroeconomic balances and its recently adopted roadmap to boost employment, including by stimulating investment by very small, small and medium-sized enterprises.