Casablanca – In response to evolving economic conditions and global uncertainties, Bank Al-Maghrib has implemented strategic measures aimed at maintaining purchasing power and fostering economic stability in Morocco. The recent decision to reduce the key interest rate by 25 basis points to 2.75% underscores the central bank’s proactive approach amidst fluctuating inflationary pressures and geopolitical tensions.

The move, announced following extensive deliberations during the second quarterly meeting of 2024, reflects a nuanced strategy to support economic recovery post-pandemic. Bank Al-Maghrib highlighted that the rate adjustment aligns with ongoing efforts to control inflation, stabilize the dirham currency, and stimulate private sector investment.

Economic indicators point to a favorable outlook, with domestic inflation projected to decline from 6.6% in 2022 to 6.1% in 2023, driven by reduced external inflationary influences and stabilized food prices. Looking ahead, the central bank anticipates inflation to average 1.5% by the end of the year, gradually rising to 2.7% by 2025. Core inflation, which reflects underlying price trends, has remained stable at 2.1% in recent months and is expected to sustain this level through 2025.

Bank Al-Maghrib’s decision is bolstered by positive forecasts in non-agricultural sectors, with robust growth anticipated in activities such as infrastructure development, tourism, and consumer spending. This outlook is supported by ongoing governmental initiatives to bolster household purchasing power and key economic sectors.

Internationally, the central bank remains vigilant amidst geopolitical tensions, particularly in Ukraine and the Middle East, which continue to pose uncertainties for global economic stability. Despite these challenges, Bank Al-Maghrib emphasizes its commitment to monitoring economic conditions closely to mitigate risks and ensure sustained growth.

Bank Al-Maghrib’s proactive monetary policy adjustments reflect a balanced approach aimed at safeguarding Morocco’s economic resilience and supporting sustainable growth in the post-pandemic era. By maintaining a focus on inflation control and economic stimulation, the central bank plays a pivotal role in preserving purchasing power and fostering a conducive environment for long-term economic prosperity.