Casablanca – On March 18, 2025, Bank Al-Maghrib (BAM), Morocco’s central bank, made an important decision to lower its key interest rate by 0.25 percentage points, bringing it down to 2.25%. This marks the second consecutive rate cut and the third reduction since June 2024. The move is aimed at helping the Moroccan economy by making borrowing cheaper, which in turn should stimulate business activity and job creation.

The decision comes after BAM’s quarterly meeting, where the central bank reviewed the country’s economic situation and its inflation outlook. The bank noted that inflation, which had been high in previous years, slowed significantly in 2024, falling to an average of just 0.9%. This is good news for the economy, as it shows that price increases are under control. BAM expects inflation to rise modestly over the next two years, but it should remain at a moderate level around 2%.

Despite the positive trend in inflation, BAM pointed out that there are still some uncertainties, particularly due to global economic tensions and changing weather patterns affecting Morocco’s agricultural production. The bank’s primary concern remains to support the country’s economy and employment, especially in the face of these challenges.

In addition to cutting the key interest rate, BAM also introduced a new program to support financing for very small businesses (TPEs). The initiative offers preferential refinancing rates for banks that lend to these companies, which are crucial to job creation. The goal is to help these businesses get easier access to loans, allowing them to grow and contribute more to the economy.

BAM’s decision comes in a global context of central banks easing their monetary policies. For example, the European Central Bank and the U.S. Federal Reserve have also made similar decisions in recent months to lower interest rates and support economic growth.

Overall, BAM’s latest move shows its commitment to providing ongoing support to Morocco’s economy. With inflation under control and measures in place to support small businesses, the central bank is working to strengthen the country’s economic stability and create new jobs. The bank will continue to monitor economic developments closely and adjust its policies accordingly to help ensure a positive outlook for the future.