For the second time in 2024… interest rates were reduced in Morocco

The Central Bank of Morocco announced today, Tuesday, that it will reduce key interest rates for the second time this year, with the aim of encouraging investment, including those related to preparing to host the 2030 FIFA World Cup.
The Central Bank decided to reduce by 25 basis points to 2.5% during its quarterly meeting, after it had reduced the interest rate for the first time in 4 years at the last June meeting, then kept the interest rate unchanged at the September meeting.

Reducing interest rates

It reached its lowest levels since 2023, against the backdrop of the inflation rate stabilizing at the level required to achieve the goal of price stability, with an increase in the state of geopolitical uncertainty, according to the Central Bank statement.
Bloomberg News Agency reported that there was a clear division among analysts regarding the central bank’s decision, despite the decline in the inflation rate last October to 0.7% compared to 10.1% in early 2023.

Interest rates in Morocco

According to an opinion poll conducted by Al-Tijari International Research Company, affiliated with the Commercial Bank of Morocco, the largest bank in Morocco, 45% of investors expected to reduce interest rates, while 55% of them expected to maintain them.
Another Bank of Africa survey indicated that 40% of investors expected a rate cut. At the same time, the Central Bank said that inflationary pressures still exist, as low rainfall rates raise fears of another drought in the Kingdom, which may affect the already affected agricultural sector and may affect prices and supplies.
Inflation is expected to rise to 2.4% next year, compared to 1% expected for 2024 and 6.1% last year.