Bank Al-Maghrib left its key policy rate unchanged at 2.25% at its December 2025 quarterly monetary policy meeting, judging that prevailing monetary conditions remain appropriate given a controlled inflation outlook and positive momentum in domestic economic activity. The decision, announced on 18 December, maintains the existing policy stance as Morocco's central bank continues to balance the support of growth against the risks posed by a still-uncertain global environment.
The central bank noted that inflation trends remained within acceptable bounds and that the trajectory of the Moroccan economy was sufficiently positive to make an immediate rate adjustment unnecessary in either direction. The quarterly meeting cadence means that the December gathering marks the final formal monetary policy decision of 2025, with the next opportunity to adjust rates coming in the first quarter of 2026.
INFLATION OUTLOOK REMAINS UNDER CONTROL
Bank Al-Maghrib's assessment of a controlled inflation environment reflects the trajectory of price growth in Morocco over the course of 2025. After the elevated inflation seen across much of the world in 2022 and 2023 — driven by commodity price shocks, supply chain disruptions, and currency movements — Morocco, in common with many emerging market economies, has experienced a meaningful moderation in headline price pressures. The stabilisation of inflation gives the central bank room to hold rates at a level that supports growth without raising concerns about excessive monetary accommodation.
For an open economy with significant exposure to imported commodity prices, food and energy costs, and the exchange rate of the dirham, maintaining credibility around price stability is central to Bank Al-Maghrib's institutional mandate. The December decision to hold rates signals that the bank's own projections and incoming data did not present a compelling case for either a pre-emptive cut in support of growth or a tightening in response to inflationary concern. The 2.25% rate is judged to be appropriately calibrated for prevailing conditions.
The bank's quarterly meeting cycle, under which policymakers convene four times per year to assess conditions and set the rate, gives the institution a structured process for incorporating updated economic projections and monitoring both domestic and international developments between decisions. The rhythm also provides predictability for market participants and financial institutions who need to anticipate the direction of monetary policy for their own planning purposes.
GLOBAL UNCERTAINTY REMAINS A KEY WATCHPOINT
Bank Al-Maghrib indicated it is carefully monitoring the impact of global uncertainty on the Moroccan economy, a reference to the range of external risks that small and medium-sized open economies must navigate. These risks include shifts in trading partner demand, fluctuations in commodity and energy prices, exchange rate volatility, and the potential spillover effects of monetary policy changes by major central banks — including the US Federal Reserve and the European Central Bank — on capital flows and financing conditions in emerging markets.
Morocco's economy has in recent years benefited from structural reforms, strong performance in the tourism and agricultural sectors, and investments tied to major international infrastructure programmes. Despite these positive domestic dynamics, the country's openness means external shocks can transmit quickly through trade, remittance, and capital account channels. Bank Al-Maghrib's decision to hold rates while explicitly flagging global uncertainty is characteristic of an institution that seeks to preserve policy credibility and optionality in a world where the external environment remains difficult to forecast.